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Comprehensive Annual Financial Report / Navajo County Community College District (Northland Pioneer College)

Comprehensive Annual
Financial Report
Year Ended June 30, 2014
Navajo County Communi ty College Dist r ict, Holbrook, AZ
Navajo County Community College District
Holbrook, AZ
Comprehensive Annual Financial Report
Year Ended June 30, 2014
Prepared by the NPC District Financial Services Office
40th
Northland Pioneer College
Anniversary 1974-2014
Navajo County Community College District
(Northland Pioneer College)
Comprehensive Annual Financial Report
Year Ended June 30, 2014
Table of Contents Page
Introductory Section
1
2
8
9
President’s Letter
Transmittal Letter
Principal Officers
Organization Chart
Mission, Vision, Values 10
Financial Section
11
13
22-23
24
25
26
27-28
Independent Auditors’ Report
Management’s Discussion and Analysis
Statement of Net Position—Primary Government
Statement of Financial Position—Component Units
Statement of Revenues, Expenses, and Changes in Net Position—Primary Government
Statement of Activities—Component Units
Statement of Cash Flows—Primary Government
Notes to Financial Statements 29-42
43
Statistical Section
Statistical Section Introduction
Financial Trends:
Net Position by Component—Last Ten Fiscal Years 44
Changes in Net Position—Last Ten Fiscal Years 45
Expenses by Function—Last Ten Fiscal Years 46
Expenses by Use—Last Ten Fiscal Years 47
Revenues by Source—Last Ten Fiscal Years 48
Statutory Limit to Budgeted Expenditures—Last Ten Fiscal Years 49
Revenue Capacity:
Assessed Valuation, Tax Rate, and Estimated Actual Value—Last Ten Fiscal Years 50
Property Tax Levies and Collections—Last Ten Fiscal Years 51
Navajo County Community College District
(Northland Pioneer College)
Comprehensive Annual Financial Report
Year Ended June 30, 2014
Table of Contents Page
Property Tax Rates, Direct and Overlapping Governments—Last Ten Years (Per $100
of Assessed Value)
52
Principal Taxpayers—Current Year and Nine Years Ago 53
Historic General Resident Tuition—Last Ten Fiscal Years 54
Debt Capacity:
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years 55
Computation of Legal Debt Margin—Last Ten Fiscal Years 56
Debt Service Coverage—Last Ten Fiscal Years 57
Demographic and Economic Information:
Schedule of Demographic and Economic Statistics—Last Ten Years 58
Schedule of Employment by Sector and Major Employers—Last Ten Calendar Years 59
Operating Information:
Enrollment and Degree Statistics—Last Ten Years 60
Student Enrollment and Demographic Statistics—Last Ten Years 61-62
Employee Statistics (Headcount)—Last Ten Fiscal Years 63
Schedule of Capital Asset Information—Last Ten Fiscal Years 64
Introductory Section
November 14, 2014
Yá'át'ééh:
I use the greeting of our Native American neighbors to reflect the diversity of cultures served by the
Navajo County Community College District. You probably know us better as Northland Pioneer College,
or just NPC, and we have been transforming lives in Northeastern Arizona for the past 40 years by
providing a quality education, focused on community needs, utilizing a decentralized approach to
providing services.
NPC was, and continues to be, a pioneer in using technology to deliver higher education opportunities to
all Navajo County residents, whether in the long shadows of Monument Valley at Kayenta, the ancient
villages on the Hopi mesas, the railroad and ranching communities of Winslow and Holbrook, the rich
farm lands of Snowflake/Taylor, the tall pines of Show Low, or the deep canyons around Whiteriver. By
networking these seven educational facilities, plus two more in St. Johns and Springerville totally funded
by the citizens of Apache County, NPC provides the general education classes needed for a college
degree. Vocational training opportunities are concentrated in the county’s larger communities, with
housing scholarships offered to those students needing to temporarily re-locate to access this training.
Operating, maintaining and staffing seven scattered facilities, plus our technology infrastructure, does
present some financial challenges, especially when you consider only 18 percent of Navajo County’s
9,949 square miles are owned by corporations or private individuals subject to primary property taxes.
Support from the state of Arizona, in the form of equalization aid, helps reduce the impact but not
completely compensate for a nearly 65 percent reduction in state operating assistance.
Through conservative spending, and sound fiscal policies established by our District Governing Board,
NPC has reserved funds for future building and other major expenses. This “save, then build” approach
allowed the college to recently construct the $5 million Skills Center on the Holbrook campus without
seeking and paying interest on loans. A survey of community needs indicates a similar facility is needed
on the Show Low campus, as well as consolidation of allied health programs out of nearly 40-year-old
modular buildings.
How NPC utilizes, reports and internally manages public funds is the focus of this first Comprehensive
Annual Financial Report (CAFR), a transparent assurance of proper management of public funds to
concerned taxpayers and other interested parties. This report reflects our efforts to improve financial
reporting in every area, while continuing our mission to expand minds and transform lives of Navajo
County residents through higher education.
Sincerely,
Jeanne Swarthout, Ph.D.
President, Northland Pioneer College
1
November 14, 2014
To the Citizens and District Governing Board of the Navajo County Community College District:
We are pleased to provide you with the Comprehensive Annual Financial Report (CAFR) of the Navajo
County Community College District (also referred to as Northland Pioneer College, NPC, or the District),
for the fiscal year ended June 30, 2014.
Arizona Revised Statutes requires community college districts to prepare annual financial statements
and for those financial statements to be audited. The State of Arizona Office of the Auditor General
audited the District’s financial statements for the fiscal year ended June 30, 2014 and issued an
unmodified opinion, indicating they believe the financial statements were fairly presented. See
Independent Auditor’s Report at page 11.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation including all disclosures rests with the District’s management. To the best of our knowledge
and belief, the enclosed data are accurate in all material respects and are reported in a manner designed
to present fairly the financial position and results of operations of the District. All disclosures necessary
to enable the reader to gain an understanding of the District’s financial activities have been included.
Management is responsible for establishing and maintaining internal controls designed to ensure that
assets are protected from loss, theft, or misuse, and to ensure that adequate accounting data are
compiled to allow for the preparation of financial statements in conformity with generally accepted
accounting principles.
This CAFR is presented in three sections: Introductory, Financial and Statistical. The introductory section
includes the President’s welcome, this transmittal letter, the District’s principal officers, organization chart,
and mission, vision, and values statements. The financial section includes the Independent Auditor’s
Report, Management’s Discussion and Analysis (MD&A), the basic financial statements and the notes to
the financial statements. The MD&A provides a narrative overview and analysis of the basic financial
statements. This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. Finally, the statistical section includes selected unaudited financial and demographic
information, generally presented on a multi-year basis.
REPORTING ENTITY
The District is an independent reporting entity within the criteria established by Generally Accepted
Accounting Principles (GAAP) and the Governmental Accounting Standards Board (GASB). In
accordance with GASB Statement Nos. 14, 39 and 61, the financial reporting entity consists of a primary
government and two component units, NPC Friends and Family (formerly NPC Foundation) and
Northeast Arizona Training Center (NATC). The District is a primary government because it is a special-purpose
government that has a separately elected governing body, is legally separate, and is fiscally
independent of other state and local governments. The financial activity of NPC Friends and Family and
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NATC are discretely presented as component units of the District. The District is not included in any other
governmental financial reporting entity.
INSTITUTIONAL PROFILE
The District is a comprehensive community college providing services in northeast Arizona. It offers
postsecondary degrees in over 63 occupational programs and specialty areas of study and offers lower
division general education courses that are transferrable to a university for a degree. It has one of the
lowest tuition rates in the state.
As a political subdivision of the State of Arizona, the District is subject to the oversight of its Governing
Board which is comprised of five elected members representing each of the five districts of Navajo
County. These members are elected for six-year terms on a staggered basis. The District’s Governing
Board is granted full authority by Arizona Revised Statutes to manage the business and educational
needs of the District. The administrative staff of the District, led by the President, is responsible for the
operation and administration of all District functions.
History and Service Area – Established in 1972, the District first enrolled students starting with
the fall semester of 1974. The District serves Navajo and Apache counties, an area of 21,158
square miles with a 2010 U.S. Census Bureau population of 178,967. The Navajo, Hopi, and
White Mountain Apache Indian Reservations occupy more than 66% of the total land in the
District’s service area and account for 60 percent of the area’s population.
Campuses are located within four of the largest Navajo County communities of Holbrook, Show
Low, Snowflake/Taylor and Winslow. Five centers are located in Polacca (Hopi), Kayenta, St.
Johns, Springerville/Eager and Whiteriver. Central District Offices are located on the Holbrook
Campus.
Accreditation – In order to have the right to award college degrees and certificates, institutions
of higher education must be evaluated by a nationally recognized accrediting agency. The Higher
Learning Commission (HLC) of the North Central Association of Colleges and Schools is charged
with evaluating the District. The District is proud to report having passed the most recent (2010)
evaluation with unqualified approval of every area of college operations. The HLC currently has
revised its 10-year evaluation schedule to one that continuously monitors excellence of
operational and educational standards. This new model ensures the District’s students of an up-to-
date, nationally recognized and accredited educational experience.
Accreditation Financial Ratios – On an annual basis the HLC requires member institutions to
provide financial information. The information is used to calculate a Composite Financial Index
(CFI) made up of four financial ratios, each one weighted differently. The CFI evaluates an
institution’s financial health; a CFI of 1.1 or higher indicates adequate financial health and requires
no HLC review. The District’s composite ratio for the years 2004 to 2013 has been greater than
2.0 and for the most recent six years have been greater than 7.0.
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ECONOMIC OUTLOOK
Arizona continues to trail the nation in recovering from the 2007-2009 recession even after five years.
According the Bureau of Labor Statistics, Arizona’s unemployment rate for August 2014 was 7.1% while
the nation’s was 6.1%. In Navajo County, the unemployment rate is still in the double digits, at 15% or
greater since 2009. According to recent labor statistics, Arizona is second from the bottom in recovering
from jobs lost in the recession. The jobs lost were primarily in the construction industry, but state
economists expect those jobs to return when the state’s population increases. The population in Navajo
County has declined since 2009. The county’s loss of jobs, decrease in population, and funding available
for education are contributing factors in the decline in enrollment for the District. Student enrollment has
declined 32% since 2009. When comparing Fall 2013 to Fall 2012 the enrollment has declined 17%,
however, the national average for the decline in enrollment for the same period for 2-year public
institutions was 3%, according to the National Student Clearinghouse Research Center. Although these
statistics for Navajo County and the District seem bleak, the District is continuing to focus on how to
provide quality education programs while keeping costs low and finding creative solutions to help our
students achieve their goals. The major initiatives summarized below are a few ways in which the District
is helping to reduce the economic burden of our citizens.
MAJOR INITIATIVES
Scholarships and Tuition Waivers – In an effort to help provide economic relief to students
encountering obstacles in attending college due to limitations on Pell Grant availability,
decreasing family, community and tribal resources, and rising costs for basic services, the District
is offering four distinct tuition plans starting in Fall 2014. The Finish Line scholarship waives tuition
costs for up to 12 credits to assist students in completing their associate degree. The College
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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Composite Financial Index
Northland Pioneer College
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Bound scholarship allows qualified high school students to take up to seven general education
credits per semester tuition free. A tuition discount of 50 percent will be given to all Adult Basic
Education classes through The Learning Cornerstone and a tuition discount of 50 percent will be
given on all summer courses.
Capital Reserve Fund – The District has always followed conservative fiscal practices, especially
planning for the future and setting aside resources for those future needs. In March 2014, the
District Governing Board recognized the benefits of saving financial resources for future needs
and approved a new Future Capital Reserve Fund policy; on an annual basis it will identify a
specific dollar amount to be designated for future capital projects. The District follows a savings
approach instead of financing large projects. A recent example was the construction of the new
Skills Center located in Holbrook; funds for the $5 million facility were set aside over several years
to allow this building to become a reality. If the District had financed the project, the cost to
taxpayers could have increased by over $2 million. On February 18, 2014, the District dedicated
the new 26,600 square-foot facility that houses instructional areas for construction, welding,
mechatronics (automated manufacturing) and industrial maintenance and operations.
Student Success Initiative – The District is developing a comprehensive college-wide initiative
of redesigning the advisement program to increase student persistence and completion. The
student advisement cycle from first contact to completion will be evaluated. The restructuring will
focus on processes performed by full-time advisors, faculty and career advisors. It will include an
early alert process to identify and help at-risk students get back on track, expand the existing
orientation program, and implement more one-stop services for incoming students who need
registration, financial aid, and payment information. The District expects a multi-year design,
implementation, and programming investment to fully develop these integrated support
mechanisms for students.
FINANCIAL INFORMATION
Effective management of the District’s funds through internal controls, budgetary controls, cash
management and fiscal reporting comprises the District’s responsibilities for stewardship, safeguarding
of assets, and accountability of resource providers. Additional information relating to the District’s
financial management can be found in the statistical section at the back of this report.
Internal Control – The District is responsible for establishing and maintaining a system of internal
controls. Internal controls are designed to ensure reasonable, but not absolute assurance that
the assets of the District are protected from loss, theft or misuse and that the accounting records
used to prepare the financial statements are reliable and conform to generally accepted
accounting principles. The concept of reasonable assurance recognizes that the cost of a control
should not exceed the benefits likely to be derived from that control element, and that the
evaluation of costs and benefits requires estimates and judgments from management.
All internal control evaluations occur within the above framework. The District believes the internal
control structure adequately safeguards assets and provides reasonable assurance of proper
recording of financial transactions.
Budgetary Controls – The District engages in an annual financial planning cycle that begins with
the Strategic Plan. The Strategic Plan is a moving three year plan that is updated annually and
involves all levels of the organization – it identifies the strategic direction of the District and
establishes operating goals in support of its mission and vision. The District maintains budgetary
controls in the form of detailed balanced budgets and budget transfer restrictions by fund,
5
department and account. On a monthly basis the District presents various financial reports to the
District Governing Board including a report of revenues, expenditures and budgets by fund, a
report on property tax receipts, cash flow position, and a narrative discussing budget deviations
by fund. The objective of these budgetary controls is to ensure compliance with the annual budget
and to fulfill the requirements of the District Governing Board’s monitoring reports.
The District complies with Arizona Revised Statutes requiring that a report of the District’s adopted
budget be published annually based on the prescribed format established by the Office of the
Auditor General. The District also complies with Arizona Revised Statutes regarding Truth in
Taxation Notice and Hearing when the District’s primary property tax levy is greater than the
amount levied in the preceding year.
The District also demonstrates compliance by issuance of an annual budgeted expenditure
limitation report that is examined by the Office of the Auditor General. The expenditure limitation
calculation determines the maximum allowable expenditure supported by local revenues.
Cash Management – The District is governed by the Arizona Revised Statutes relating to overall
investment of idle public funds. The fiduciary responsibility for such investments is entrusted to
the District Governing Board and facilitated through the Vice President of Administrative Services.
The District invests idle funds in a prudent, conservative, and secure manner for the highest
available yield, given cash flow constraints, as prescribed by Arizona Revised Statutes. The
principal investment vehicles used during the fiscal year were the Navajo County Treasurer’s
investment pool and the Local Government Investment Pool (LGIP) managed by the Arizona
State Treasurer. Both have provided the District with safe liquid investments.
Financial Reporting – The District has an automated financial accounting system that captures
all financial transactions to prepare the audited financial statements, data for the CAFR, and to
develop internal management reports for decision-making needs and to aid in the allocation of
resources.
The CAFR for the District was formulated with data from several sources including District records
and the Navajo County Finance, Treasurer’s and Assessor’s Offices. These statements present
information on the financial condition of the District and whether resources were adequate to
cover the costs of providing services during the reporting period. The District’s CAFR is distributed
to the District Governing Board and administrators, the State legislature, Federal and State
agencies, and financial institutions as well as others throughout the general public.
INDEPENDENT AUDIT
The District is audited by Office of the Auditor General for the State of Arizona. The audit determines if
the financial statements are free of material misstatements and ensures compliance with the Arizona
Revised Statutes that require an annual audit of the District’s financial statements. The Independent
Auditor’s Report is included in the financial section of this CAFR. The District received an unmodified
opinion for the fiscal year ended June 30, 2014.
The District’s component units, NPC Friends and Family and NATC, are audited by local CPA firms. Both
component units received unmodified opinions for the fiscal year ended June 30, 2014.
GFOA CERTIFICATE OF ACHIEVEMENT
The fiscal year ended June 30, 2014 marks the end of forty year anniversary of the District. It is also the
first year it has compiled a comprehensive annual financial report for submission to the Government
6
Finance Officers Association (GFOA) in an effort to be awarded a Certificate of Achievement for financial
reporting. In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must also be in
compliance with generally accepted accounting principles and applicable legal requirements. The District
will submit this comprehensive annual financial report to the GFOA to determine its eligibility for the
achievement award.
ACKNOWLEDGEMENTS
We express our appreciation to all those who assisted in and contributed to the preparation of this report.
Our deepest gratitude goes to the dedicated staff in the Business Office. We would also express our
appreciation to the State of Arizona Office of the Auditor General and the Navajo County Finance,
Treasurer’s and Assessor’s Offices for their assistance with this report. Lastly, we thank the members of
the District Governing Board and the President for their guidance and support in maintaining the financial
stability of the District.
Respectfully submitted,
V. Blaine Hatch Maderia J. Ellison
Vice President for Administrative Services Director of Financial Services
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PRINCIPAL OFFICERS
As of June 30, 2014
DISTRICT GOVERNING BOARD
Mr. Daniel Peaches, District 1
Mr. Prescott Winslow, District 2
Mr. Frank Lucero, District 3
Mr. James Matteson, District 4
Ms. Ginny Handorf, District 5
EXECUTIVE TEAM
Dr. Jeanne Swarthout, President
Mr. V. Blaine Hatch, Vice President for Administrative Services
Mr. Mark Vest, Vice President for Learning & Student Services
Mr. Eric Bishop, Director of Information Services
Dr. Leslie Wasson, Director of Institutional Effectiveness
8
ORGANIZATION CHART
9
OUR MISSION
Northland Pioneer College creates, supports and promotes lifelong learning.
OUR VISIONS
 NPC creates a learner-centered environment.
 NPC responds to community needs.
 NPC provides effective and responsive service to our constituencies.
 NPC fosters professional growth and collegial collaboration.
OUR VALUES
 We Value Learning
NPC is a community designed first and foremost to promote learning for our constituencies and for
ourselves.
 We Value Quality
NPC is strongly committed to improving learning opportunities by promoting high educational
standards.
 We Value Integrity
NPC is an organization that demands honesty and fairness in every relationship.
 We Value Diversity
NPC respects and promotes multi-culturalism in its students, academic programs and employment.
 We Value Service
NPC is a service organization dedicated to helping our students determine and achieve their goals.
 We Value Accountability
NPC adopts efficient operational practices to assure that our constituencies receive the highest
quality services for the lowest possible cost.
 We Value Responsiveness
NPC addresses community and students needs quickly.
 We Value Students and Colleagues
NPC respects and promotes the dignity, worth and capabilities of each individual.
 We Value Access
NPC is committed to providing accessible and affordable learning opportunities.
 We Value Collaboration
NPC can best serve its communities through cooperation and partnerships.
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Financial Section
2910 NORTH 44th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051
Independent Auditors’ Report
Members of the Arizona State Legislature
The Governing Board of
Navajo County Community College District
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities and aggregate discretely
presented component units of the Navajo County Community College District as of and for the year ended
June 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of the aggregate discretely presented component units. Those statements were audited by
other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts
included for the aggregate discretely presented component units, is based solely on the reports of the other
auditors. We conducted our audit in accordance with U.S. generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement. The financial statements
of the aggregate discretely presented component units were not audited by the other auditors in accordance with
Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the District’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
11
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the business-type activities and
aggregate discretely presented component units of the Navajo County Community College District as of June 30,
2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with U.S. generally accepted accounting principles.
Other Matters
Required Supplementary Information
U.S. generally accepted accounting principles require that the Management’s Discussion and Analysis on pages
13 through 21 be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with U.S. generally accepted auditing standards, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The introductory and statistical sections listed in the table of
contents are presented for purposes of additional analysis and are not required parts of the basic financial
statements.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit
of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on
them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 14, 2014,
on our consideration of the District’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the District’s internal control over financial reporting and compliance.
Debbie Davenport
Auditor General
November 14, 2014
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Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Our discussion and analysis of the District’s financial performance provides an overview of the District’s
financial activities for the year ended June 30, 2014. Please read it in conjunction with the transmittal letter
which precedes this section and the District’s basic financial statements, which immediately follow.
Basic Financial Statements
The District’s annual financial statements are presented in accordance with U.S. generally accepted
accounting principles prescribed by the Governmental Accounting Standards Board (GASB), the
authoritative body for establishing Generally Accepted Accounting Principles (GAAP) for state and local
governments, including public institutions of higher education. These standards permit public colleges and
universities to use the guidance for special-purpose governments engaged in business-type activities. The
standards allow for the presentation of the District’s financial activity in a consolidated, single-column, entity-wide
format. This format is similar to the type of financial statements typical of a business enterprise or not-for-
profit organization. The basic financial statements consist of the following:
The Statement of Net Position reflects the financial position of the District at June 30, 2014. It shows the
various assets owned or controlled, related liabilities and other obligations, and the various categories of
net position. Net position is an accounting concept defined as total assets less total liabilities, and as
such, represent institutional equity or ownership in the District’s total assets.
The Statement of Revenues, Expenses, and Changes in Net Position reflects the results of operations
and other changes for the year ended June 30, 2014. It shows the various revenues and expenses, both
operating and nonoperating, reconciling the beginning net position amount to the ending net position
amount, which is shown on the Statement of Net Position described above.
The Statement of Cash Flows reflects the inflows and outflows of cash and cash equivalents for the year
ended June 30, 2014. It shows the various cash activities by type, reconciling the beginning cash and
cash equivalents amount to the ending cash and cash equivalents amount, which is shown on the
Statement of Net Position described above. In addition, this statement reconciles cash flows from
operating activities to operating loss on the Statement of Revenues, Expenses, and Changes in Net
Position described above.
Financial Highlights and Analysis
Consistent with its mission, the District creates, supports and promotes lifelong learning. Major funding
sources supporting all functions include property taxes, state appropriations, government grants and
contracts, and tuition and fees. The District may exercise primary and secondary property tax levy
authority for generation of funds used for operating, capital equipment, and debt retirement purposes.
The condensed financial information below highlights the main categories of the Statement of Net
Position. Assets are distinguished as either current or noncurrent. Current assets are resources available
to meet the District’s operating needs. Other liabilities are made up of accounts payable, unearned
revenues, and accrued payroll and employee benefits. Net position is divided into three categories
reflecting the broad characteristics of institutional equity in the assets of the District. In addition to the
District’s capital assets, the District holds resources that external parties have restricted for specific
13
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
programs or purposes. The remaining net position is unrestricted but is dedicated to the District’s primary
mission. Over time, increases or decreases in net position may serve as a useful indicator of whether the
District’s financial position is improving or deteriorating.
Condensed Financial Information
The following is a listing of condensed financial information for the District as of June 30, 2014 and
June 30, 2013:
Condensed Statement of Net Position—Primary Government
As of June 30
2014
2013
% Change
Assets:
Current assets $42,574,324 $39,408,725 8%
Noncurrent assets, other than
capital assets
674,244
799,138
-16%
Capital assets, net 39,289,567 38,701,227 2%
Total assets 82,538,135 78,909,090 5%
Liabilities:
Other liabilities 1,776,551 1,757,716 1%
Long-term liabilities 462,826 450,164 3%
Total liabilities 2,239,377 2,207,880 1%
Net Position:
Net investment in capital assets 39,231,822 38,626,891 2%
Restricted 612,712 691,628 -11%
Unrestricted 40,454,224 37,382,691 8%
Total net position $80,298,758 $76,701,210 5%
Total assets increased $3.6 million, or 5 percent, driven by current assets which increased $3.2 million.
Cash and investments held with the County Treasurer and the Arizona State Treasurer increased due to
cost containment of $2.0 million in the General Fund and $1.5 million of unspent contingency funds
established in the budget to address unforeseen risks. The available funds will be used to help with future
capital projects included in the Master Facilities Plan.
Total net position increased by $3.6 million, or 5 percent, related to an increase of $3.0 million in
unrestricted net position and of $0.6 million in net investment in capital assets. The District has committed
to using unrestricted net position to support capital needs over the next several years, dedicating $25.0
million for fiscal years 2014, 2015, and 2016. While the District plans to use portions of its unrestricted
net position to continue to provide consistent quality of services to students and communities, regular
evaluation of financial resources is needed as the local and state economy continues to recover from the
recession.
14
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
The condensed financial information below highlights the main categories of the Statement of Revenues,
Expenses, and Changes in Net Position. Generally, revenues generated by the District from exchange
transactions are considered operating revenues. Other revenues such as state appropriations, property
taxes, and certain government grants are considered nonoperating revenues. In compliance with U.S.
generally accepted accounting principles, scholarships applied to tuition and fees are recorded as an
offset to operating revenues instead of being reported as an expense to the District.
Depreciation expense is recorded in accordance with the adoption of the economic resources
measurement focus. The construction and acquisition of capital assets, although budgeted and tracked
as expenditures in the accounting system, are not reflected as expenses in these statements. Such
transactions are instead capitalized and reported as assets, with the systematic depreciation of the costs
expensed over the useful lives of the assets constructed or acquired.
The District shows an operating loss because the three largest revenue sources, property taxes, state
appropriations, and government grants, are considered nonoperating revenues. Please refer to the
Summary of Significant Accounting Policies (Note 1), which directly follows the presentation of the basic
financial statements, for a description of the differences between operating and nonoperating revenues.
15
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Condensed Statement of Revenues, Expenses, and
Changes in Net Position—Primary Government
Year Ended June 30
2014
2013
% Change
Revenues:
Operating
Tuition and fees, net $ 2,295,137 $ 2,466,640 -7%
Government contracts 3,156,936 2,969,273 6%
Bookstore income, net 66,720 42,460 57%
Other 352,295 379,831 -7%
Total operating revenues 5,871,088 5,858,204 0%
Nonoperating
Property taxes 13,153,327 13,180,294 0%
State appropriations 7,160,800 7,059,800 1%
Government grants 4,740,596 5,018,111 -6%
Private grants 304,219 325,919 -7%
Share of state sales taxes 435,192 545,682 -20%
Investment earnings 148,526 170,717 -13%
Gain (loss) on disposal of capital
assets
(112,752)
18,627
-705%
Total nonoperating revenues 25,829,908 26,319,150 -2%
Other revenues
Capital appropriations 122,600 - -
Total revenues 31,823,596 32,177,354 -1%
Expenses:
Operating $28,220,910 $27,631,411 2%
Nonoperating 5,138 - -
Total expenses 28,226,048 27,631,411 2%
Increase in net position 3,597,548 4,545,943 -21%
Total net position, July 1 76,701,210 72,155,267 6%
Total net position, June 30 $80,298,758 $76,701,210 5%
16
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Total operating revenues remained relatively flat. Increases in government contracts were offset by a decline
in tuition and fees revenue. Government contracts increased $188,000, or 6 percent, as a result of a
$305,000 increase in State of Arizona reimbursement for Apache County students attending classes in
Navajo County, while Northern Arizona Vocational Institute of Technology revenue decreased $138,000
related to a decline in enrollment. Tuition and fees decreased by $172,000, or 7 percent, related to declining
enrollment and an increase in scholarship allowances which reduced net tuition and fees.
Nonoperating revenues decreased $489,000, or 2 percent. Government grants decreased $278,000, or
6 percent, driven primarily by a decrease in the Federal Pell Program related to declining student
enrollment and constraints of new eligibility requirements for students. The $110,000, or 20 percent,
decrease in the share of state sales taxes results from a change in the timing of the recognition of this
income in the prior fiscal year. That change resulted in reporting income for a 14-month period in the prior
fiscal year compared with a 12-month period in the current year. State appropriations, which include
operating state aid and equalization aid, increased $101,000, or 1 percent, compared to the prior year.
The increase is a result of increased equalization funding of $144,000.
Other revenues increased $123,000 due to a capital appropriation which was approved for fiscal year
2014. This is the first capital funding provided to the District since fiscal year 2008.
17
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
2014 2013 % Change
Operating Expenses
Educational and general:
Instruction $ 9,761,727 $ 9,660,102 1%
Public service 35,889 29,387 22%
Academic support 1,046,927 1,047,037 0%
Student services 2,143,989 2,151,538 0%
Institutional support 8,475,611 8,308,926 2%
Operation and maintenance of plant 2,118,547 1,867,890 13%
Scholarships 2,240,669 2,570,647 -13%
Auxiliary enterprises 559,067 451,470 24%
Depreciation 1,838,484 1,544,414 19%
Total operating expenses 28,220,910 27,631,411 2%
Nonoperating Expenses
Interest expense 5,138 - -
Total nonoperating expense 5,138 - -
Total expenses $28,226,048 $27,631,411 2%
Operating expenses increased $589,000, or 2 percent. The District continues to focus on maintaining
comprehensive and quality services to the students and communities in its service area, as a result
instruction expenses increased $102,000, or 1 percent. The District also continues to focus on repairs
and maintenance of the existing plant and equipment and as a result Operation and Maintenance of Plant
increased $251,000, or 13 percent. Scholarships decreased $330,000, or 13 percent, driven primarily by
a decrease in federal financial aid awards, specifically the Federal Pell Program, which was connected
to declining student enrollment.
Instruction
35%
Public
service
<1%
Academic
support
Student 4%
services
8%
Institutional
support
30%
Operation and
maintenance of
plant
7%
Scholarships
8%
Auxiliary
enterprises
2%
Depreciation
6%
2014 Operating Expenses by Category
18
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Capital Assets and Debt Administration
Capital assets are defined as those items costing over $5,000 and that have an estimated useful life of
more than 1 year.
Beginning in fiscal year 2011, the District developed a rolling 3-year plan to manage capital needs. The
District has set aside a portion of its unrestricted net position to address future needs. It has focused on
maintenance of facilities that had been deferred for several years and has pursued capital acquisitions
and new construction to meet the demands of its students and the communities it serves.
 In fiscal year 2013, the District started construction of the 26,600 square-foot Skills Center located on
the Painted Desert Campus in Holbrook and spent $3.6 million. An additional $1.7 million was
required to complete the building in fiscal year 2014. Construction was completed in December 2013
and classes in the building began in January 2014.
 In fiscal year 2014, the District began renewal projects to enhance and extend the useful life of the
facilities. The projects included work at all four campuses, the Painted Desert Campus in Holbrook,
the White Mountain Campus in Show Low, the Silver Creek Campus in Snowflake/Taylor, the Little
Colorado Campus in Winslow, and one center, the Whiteriver Center in Whiteriver.
Over the next 3 years, the District plans to spend $25.0 million on major capital acquisitions and new
construction while continuing to address deferred maintenance. The construction of new facilities at the
White Mountain Campus in Show Low is planned, but specific details have not been finalized.
Additional information on the District’s capital assets can be found in Note 3 and additional information
on the District’s construction in progress can be found in Note 4 to the basic financial statements.
The District currently has no long-term debt other than compensated absences and capital leases and
does not anticipate acquiring new debt.
Current Factors Having Probable Future Financial Significance
The District has four primary revenues sources: property taxes, state appropriations, government grants
and contracts, and tuition and fees.
The District historically set the property tax levy at the maximum rate allowed by statute. The District did
not set the property tax levy at the maximum rate allowed for fiscal year 2014 due to concerns over the
impact to taxpayers, but it did set the levy at the maximum for fiscal year 2015. Taxpayer opposition to
property taxes is growing due to continuing challenges related to the weak local economy.
 During fiscal year 2013 the recycle paper mill in Snowflake was permanently closed resulting in the
loss of approximately 1,300 jobs directly and indirectly related to the operations of the facility. The
closure of the paper mill continues to have a negative impact on the property values and the related
property taxes. The assessed value of the papermill property decreased by over 30%.
19
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
 During fiscal year 2014 Transwestern Pipeline brought a lawsuit disputing the assessed valuation of
its property in Arizona. The settlement of the dispute resulted in a property tax refund to the company.
The District’s share of the refund was $120,000. Due to the success of this lawsuit other companies
may dispute the assessed valuation of property in Arizona which, in turn, could require additional
refunds from the District.
The District will continue to closely monitor the impacts these and other factors may have on future
property tax revenues.
State appropriations used to support the District’s operations increased by 1 percent for fiscal year 2014
from fiscal year 2013. The District received equalization aid of $5.5 million in fiscal year 2014, which was
an increase of 3 percent from the prior year. Capital appropriation funding was approved for fiscal year
2014 in the amount of $123,000. This is the first capital funding provided to the District since fiscal year
2008. Total state funding has been on the decline for several years with no expectation of increase.
Performance-based funding continues to be discussed at a variety of governance levels but no future
plans have been finalized. The impact to the District is unknown, but the potential for an increase in state
appropriations to the District is low.
Each year the District completes the Annual Budget Expenditure Limitation Report (ABELR) which
compares budgeted expenditures of public funds to a constitutional limit. The expenditure limit is
calculated using base amount expenditures from fiscal year 1980, annual inflation, and enrollment.
Historically the District’s expenditures have been below the calculated limit. Recently the calculated
impact of inflation combined with the reductions in enrollment are not allowing the District to keep pace
with the actual growth in expenses. As this trend continues the District’s expenditures will likely exceed
the constitutional expenditure limit. The District has accumulated unspent revenues which will be used to
offset excess expenditures in the near-term. The long-term solution is to seek revisions to the expenditure
limit legislation.
Recently adopted GASB regulations will require the District to adopt a new reporting method for its
proportionate share of the underfunded Arizona State Retirement System (ASRS) beginning in fiscal year
2015. Under this new guidance the District will report a liability on its financial statements that is
equivalent to its proportionate share of the net pension liability of all the employers who participate in the
ASRS cost-sharing plan. This new reporting requirement is expected to have a significant effect on the
District’s financial statements, however, the District will not be able to determine its proportionate share
until ASRS discloses the total underfunded amount.
Funding from external sources, including federal and local grants and contracts along with community
and business partnerships, is important to the District. The District continuously pursues additional grant
and partnership opportunities.
The District continuously evaluates its tuition and fee structure. The District is limited in the amount of
increases it can implement based on the demographics of its service area. The District’s service area
covers approximately 21,158 square miles and is comprised of one of the poorest, most remote, and
least populated areas in both Arizona and the United States. In-state tuition increased 3 percent, up $2
from $62 to $64 per credit hour in fiscal year 2014. For fiscal year 2015 tuition was increased an additional
20
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
3 percent to $66 and it is the intention of the District to limit tuition increases to $2 per year for the
upcoming two years. Establishing tuition rates in advance will aid our students in their financial planning
for the completion of their course work at the District. The District continues to offer one of the lowest
tuition rates in the State.
Requests for Information
This discussion and analysis is designed to provide a general overview of the Navajo County Community
College District’s finances for all those with an interest in such matters. Questions concerning any of the
information provided in the basic financial statements or requests for additional information should be
addressed to Administrative Services, Northland Pioneer College, PO Box 610, Holbrook, AZ 86025.
Separately issued financial statements are issued for Northland Pioneer College Foundation and
Northeast Arizona Training Center, Inc., discretely presented component units of Navajo County
Community College District. Complete financial statements for both component units can be obtained
from Northland Pioneer College, PO Box 610, Holbrook, AZ 86025.
21
Navajo County Community College District
(Northland Pioneer College)
Statement of Net Position—Primary Government
June 30, 2014
Business-Type
Activities
Assets
Current assets:
Cash and investments $ 40,346,816
Receivables (net of allowances for uncollectibles):
Accounts 803,897
Property taxes 452,161
Student 678,288
Inventories 64,935
Prepaid items 228,227
Total current assets 42,574,324
Noncurrent assets:
Restricted assets:
Cash and investments 612,712
Property taxes receivable (net of allowances of $100,000) 4,014
Student receivable (net of allowances of $1,189,833) 57,518
Capital assets, not being depreciated 835,061
Capital assets, being depreciated, net 38,454,506
Total noncurrent assets 39,963,811
Total assets 82,538,135
Liabilities
Current liabilities:
Accounts payable 687,821
Accrued payroll and employee benefits 273,767
Unearned revenues 814,963
Current portion of compensated absences payable 303,811
Current portion of capital lease payable 17,854
Total current liabilities 2,098,216
Noncurrent liabilities:
Compensated absences payable 101,270
Capital lease payable 39,891
Total noncurrent liabilities 141,161
Total liabilities 2,239,377
(Continued)
See accompanying notes to financial statements.
22
Navajo County Community College District
(Northland Pioneer College)
Statement of Net Position—Primary Government
June 30, 2014
(Concluded)
Business-Type
Activities
Net Position
Net investment in capital assets $ 39,231,822
Restricted:
Nonexpendable—endowments 12,414
Expendable:
Scholarships, grants, and contracts 238,429
Capital projects 361,869
Unrestricted 40,454,224
Total net position $ 80,298,758
See accompanying notes to financial statements.
23
Navajo County Community College District
(Northland Pioneer College)
Statement of Financial Position—Component Units
June 30, 2014
Northeast
Northland Pioneer Arizona Training
College Foundation Center, Inc. Total
Assets
Cash and cash equivalents $ 33,788 $ 66,719 $ 100,507
Restricted cash—savings 3,170 3,170
Investments:
Marketable securities—restricted 127,497 127,497
Real estate 8,000 8,000
Prepaid expense 8,524 3 ,742 12,266
Property and equipment, net of
accumulated depreciation 32,981 1,860,461 1,893,442
Total assets $ 213,960 $ 1,930,922 $ 2,144,882
Liabilities
Accounts payable $ 671 $ 671
Other current liabilities $ 5 00 500
Long-term obligations due within 1 year 25,000 25,000
Total liabilities 671 25,500 26,171
Long-term debt 320,000 320,000
Total liabilities 671 345,500 346,171
Net Assets
Unrestricted 82,622 1,585,422 1,668,044
Temporarily restricted 64,542 64,542
Permanently restricted 66,125 66,125
Total net assets 213,289 1,585,422 1,798,711
Total liabilities and net assets $ 213,960 $ 1,930,922 $ 2,144,882
See accompanying notes to financial statements.
24
Navajo County Community College District
(Northland Pioneer College)
Statement of Revenues, Expenses, and
Changes in Net Position—Primary Government
Year Ended June 30, 2014
Business-Type
Activities
Operating revenues:
Tuition and fees, net of scholarship allowances of $2,624,037 $ 2,295,137
Government contracts 3,156,936
Bookstore income, net of scholarship allowances of $23,188 66,720
Other sales and services 95,157
Other 257,138
Total operating revenues 5,871,088
Operating expenses:
Educational and general:
Instruction 9,761,727
Public service 35,889
Academic support 1,046,927
Student services 2,143,989
Institutional support 8,475,611
Operation and maintenance of plant 2,118,547
Scholarships 2,240,669
Auxiliary enterprises 559,067
Depreciation 1,838,484
Total operating expenses 28,220,910
Operating loss (22,349,822)
Nonoperating revenues and expenses:
Property taxes 13,153,327
State appropriations 7,160,800
Government grants 4,740,596
Private grants 304,219
Share of state sales taxes 435,192
Investment earnings 148,526
Interest expense on debt (5,138)
Loss on disposal of capital assets (112,752)
Total nonoperating revenues and expenses 25,824,700
Income before other revenues, expenses, gains, or losses 3,474,948
Capital appropriations 122,600
Increase in net position 3,597,548
Total net position, July 1, 2013 76,701,210
Total net position, June 30, 2014 $ 80,298,758
See accompanying notes to financial statements.
25
Navajo County Community College District
(Northland Pioneer College)
Statement of Activities—Component Units
Year Ended June 30, 2014
Northland Northeast
Pioneer College Arizona Training
Foundation Center, Inc. Total
Changes in Unrestricted Net Assets
Unrestricted support $ 6,526 $ 10,445 $ 16,971
Memberships and usage fees 25,500 25,500
Interest income 15 37 52
Rental income 32,955 26,000 58,955
Total unrestricted support 39,496 61,982 101,478
Net assets released from restrictions 9,509 - 9,509
Total unrestricted revenues and support 49,005 61,982 110,987
Expenses:
Program services 32,163 124,487 156,650
Support services 20,501 20,622 41,123
Interest expense 17,225 17,225
Total expenses 52,664 162,334 214,998
Decrease in unrestricted net assets (3,659) (100,352) (104,011)
Changes in Temporarily Restricted Net Assets
Contributions 3,459 3,459
Interest income 2,609 2,609
Realized gain on investments 15,702 15,702
Unrealized loss on investments (2,003) (2,003)
Net assets released from restrictions (9,509) (9,509)
Investment fees (826) (826)
Increase in temporarily restricted net assets 9,432 9,432
Changes in Permanently Restricted Net Assets
Interest income 27 27
Realized gain on investments 163 163
Unrealized loss on investments (20) (20)
Investment fees (9) (9)
Decrease in permanently restricted net assets 161 161
Increase (decrease) in net assets 5,934 (100,352) (94,418)
Net assets, beginning of year 207,355 1,685,774 1,893,129
Net assets, end of year $ 213,289 $ 1,585,422 $ 1,798,711
See accompanying notes to financial statements.
26
Navajo County Community College District
(Northland Pioneer College)
Statement of Cash Flows—Primary Government
Year Ended June 30, 2014
Business-Type
Activities
Cash flows from operating activities:
Tuition and fees $ 2,563,686
Government contracts 3,889,513
Bookstore receipts 66,720
Other receipts 352,295
Payments to suppliers and providers of goods and services (6,816,749)
Payments for employee wages and benefits (17,209,940)
Payments to students for scholarships and loans (2,240,669)
Net cash used for operating activities (19,395,144)
Cash flows from noncapital financing activities:
Property taxes 13,249,046
State appropriations 7,160,800
Government grants 5,091,448
Private grants 304,219
Share of state sales taxes 396,536
Net cash provided by noncapital financing activities 26,202,049
Cash flows from capital and related financing activities:
Capital appropriations 122,600
Proceeds from sale of capital assets 198
Purchase and construction of capital assets (2,539,774)
Principal paid on capital lease (16,591)
Interest paid on capital lease (5,138)
Net cash used for capital and related financing activities (2,438,705)
Cash flows from investing activities:
Interest received on investments 148,526
Net cash provided by investing activities 148,526
Net increase in cash and cash equivalents 4,516,726
Cash and cash equivalents, July 1, 2013 36,442,802
Cash and cash equivalents, June 30, 2014 $ 4 0,959,528
(Continued)
See accompanying notes to financial statements.
27
Navajo County Community College District
(Northland Pioneer College)
Statement of Cash Flows—Primary Government
Year Ended June 30, 2014
(Concluded)
Business-Type
Activities
Reconciliation of operating loss to net cash
used for operating activities:
Operating loss $ (22,349,822)
Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation 1,838,484
Changes in assets and liabilities:
Increase in:
Inventories (17,225)
Unearned revenues 143,741
Compensated absences payable 29,253
Decrease in:
Accounts receivable 732,577
Student receivable 124,808
Prepaid items 227,946
Accounts payable (86,220)
Accrued payroll and employee benefits (38,686)
Net cash used for operating activities $ (19,395,144)
Reconciliation of cash and cash equivalents,
as presented on the Statement of Net Position:
Cash and investments $ 4 0,346,816
Restricted assets:
Cash and investments 612,712
Total cash and cash equivalents, June 30, 2014 $ 4 0,959,528
See accompanying notes to financial statements.
28
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 1 - Summary of Significant Accounting Policies
Navajo County Community College District’s accounting policies conform to generally
accepted accounting principles applicable to public institutions engaged only in business-type
activities adopted by the Governmental Accounting Standards Board (GASB).
A. Reporting Entity
The District is a special-purpose government that is governed by a separately elected
governing body. It is legally separate and fiscally independent of other state and local
governments. The accompanying financial statements present the activities of the District (the
primary government) and its discretely presented component units, the Northland Pioneer
College Foundation (Foundation), and the Northeast Arizona Training Center, Inc. (NATC).
The Foundation is a legally separate, tax-exempt organization. It acts primarily as a fund-raising
organization that receives gifts and bequests, administers those resources, and
disburses payments to or on behalf of the District for scholarships and other educational
purposes. Although the District does not control the timing or amount of the receipts from the
Foundation, the Foundation’s restricted resources can be used only by or for the benefit of
the District or its constituents. Consequently, the Foundation is considered a component unit
of the District and is discretely presented in the District’s financial statements.
For financial reporting purposes, the Foundation follows the Financial Accounting Standards
Board (FASB) statements for not-for-profit organizations. As such, certain revenue
recognition criteria and presentation features are different from GASB revenue recognition
criteria and presentation features. No modifications have been made to the Foundation’s
financial information included in the District’s financial report. Accordingly, those financial
statements have been reported on separate pages following the District’s respective
counterpart financial statements. For financial reporting purposes, only the Foundation’s
statements of financial position and activities are included in the District’s financial
statements as required by generally accepted accounting principles for public colleges and
universities. The Foundation has a June 30 year-end.
During the year ended June 30, 2014, the Foundation distributed $12,359 to the District for
both restricted and unrestricted purposes. Complete financial statements of the Foundation
can be obtained from the Northland Pioneer College Foundation, P.O. Box 610, Holbrook,
AZ 86025-0610.
NATC is a legally separate, tax-exempt organization. It acts primarily as a certified regional
training center to meet the educational and testing needs of fire and law enforcement
professionals in Northeast Arizona. The enabling legislation for NATC calls for the District to
exercise operating control over NATC. Therefore, the voting members of NATC’s Board of
Directors are employees of the District and the District is able to significantly influence the
programs, activities or level of services provided by NATC. Consequently, NATC is considered
a component unit of the District and is discretely presented in the District’s financial statements.
29
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
For financial reporting purposes, NATC follows the Financial Accounting Standards Board
(FASB) Accounting Standards Codification (ASC) 958. As such, certain revenue recognition
criteria and presentation features are different from GASB revenue recognition criteria and
presentation features. No modifications have been made to NATC’s financial information
included in the District’s financial report. Accordingly, those financial statements have been
reported on separate pages following the District’s respective counterpart financial
statements. For financial reporting purposes, only NATC’s statements of financial position
and activities are included in the District’s financial statements as required by generally
accepted accounting principles for public colleges and universities. NATC has a June 30
year-end.
Complete financial statements of NATC can be obtained from the Northeast Arizona Training
Center, P.O. Box 610, Holbrook, AZ 86025-0610.
B. Basis of Presentation and Accounting
The basic financial statements include a statement of net position; a statement of revenues,
expenses, and changes in net position; and a statement of cash flows.
A statement of net position provides information about the District’s assets, deferred outflows
of resources, liabilities, deferred inflows of resources, and net position at the end of the year.
Assets and liabilities are classified as either current or noncurrent. Net position is classified
according to external donor restrictions or availability of assets to satisfy the District’s
obligations. Net investment in capital assets represents the value of capital assets, net of
accumulated depreciation, less any outstanding debt incurred to acquire or construct the
assets. Nonexpendable restricted net position includes gifts that have been received for
endowment purposes, the corpus of which cannot be expended. Expendable restricted net
position represents grants, contracts, gifts, and other resources that have been externally
restricted for specific purposes. Unrestricted net position consists of all other resources,
including those that have been designated by management to be used for other than general
operating purposes.
A statement of revenues, expenses, and changes in net position provides information about
the District’s financial activities during the year. Revenues and expenses are classified as
either operating or nonoperating, and all changes in net position are reported, including
capital contributions and additions to endowments. Operating revenues and expenses
generally result from exchange transactions. Accordingly, revenues such as tuition and
bookstore charges, in which each party receives and gives up essentially equal values, are
considered operating revenues. Other revenues, such as property taxes, state appropriations
and government grants, result from transactions in which the parties do not exchange equal
values and are considered nonoperating revenues. Operating expenses include the cost of
sales and services, administrative expenses, and depreciation on capital assets. Other
expenses, such as interest expense, are considered to be nonoperating expenses.
30
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
A statement of cash flows provides information about the District’s sources and uses of cash
and cash equivalents during the year. Increases and decreases in cash and cash equivalents
are classified as either operating, noncapital financing, capital financing, or investing.
The financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned, and expenses are
recorded at the time liabilities are incurred, regardless of when the related cash flows take
place. Property taxes are recognized as revenues in the year for which they are levied. State
appropriations are recognized as revenue in the year in which the appropriation is first made
available for use. Grants and donations are recognized as revenue as soon as all eligibility
requirements the provider imposed have been met. The District eliminates all internal activity.
The District’s policy is to first apply restricted resources when an expense is incurred for
purposes for which both restricted and unrestricted net position is available.
C. Cash and Investments
For the statement of cash flows, the District’s cash and cash equivalents are considered to
be cash on hand, demand deposits, cash and investments held by the County Treasurer,
investments in the State Treasurer’s Local Government Investment Pool, and highly liquid
investments. All investments are stated at fair value.
D. Inventories
Inventories are stated at the lower of cost (first-in, first-out method) or market.
E. Capital Assets
Capital assets are reported at actual cost, or estimated historical cost if historical records are
not available. Donated assets are reported at estimated fair value at the time received.
Capitalization thresholds (the dollar values above which asset acquisitions are added to the
capital asset accounts), depreciation methods, and estimated useful lives of capital assets
reported in the financial statements are as follows:
Capitalization
Threshold
Depreciation
Method
Estimated
Useful Life
Land $5,000 Not applicable Not applicable
Buildings 5,000 Straight-line 10 – 40 years
Improvements other than buildings 5,000 Straight-line 20 – 40 years
Equipment 5,000 Straight-line 5 – 10 years
Library books All Straight-line 10 years
31
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
F. Investment Earnings
Investment earnings is composed of interest, dividends, and net changes in the fair value of
applicable investments.
G. Compensated Absences
Compensated absences payable consists of vacation leave employees earned based on
services already rendered.
Employees may accumulate up to 224 hours of vacation depending on years of service, but
they forfeit any unused vacation hours in excess of the maximum amount at the end of August
each year. Upon terminating employment, the District pays all unused and unforfeited
vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in
the financial statements.
Employees may accumulate up to 1040 hours of sick leave. Generally, sick leave benefits
provide for ordinary sick pay and are cumulative but employees forfeit them upon terminating
employment. Because sick leave benefits do not vest with employees a liability for sick leave
benefits is not accrued in the financial statements.
H. Scholarship Allowances
A scholarship allowance is the difference between the stated charge for goods and services
the District provides and the amount that the student or third parties making payments on the
student’s behalf pay. Accordingly, some types of student financial aid, such as Pell grants
and scholarships the District awards, are considered scholarship allowances. These
allowances are netted against tuition and fees revenues, and bookstore income in the
statement of revenues, expenses, and changes in net position.
Note 2 - Deposits and Investments
Arizona Revised Statutes (A.R.S.) requires the District to deposit special tax levies for the
District’s maintenance or capital outlay with the County Treasurer. The statutes do not require
the District to deposit other public monies in its custody with the County Treasurer; however,
the District must act as a prudent person dealing with another’s property when making
investment decisions about those monies. The statutes do not include any requirements for
credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign
currency risk for the District’s investments.
Deposits—At June 30, 2014, the carrying amount of the District’s deposits was $1,335,715,
and the bank balance was $2,021,908. The District does not have a policy for custodial credit
risk.
32
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Investments—The District’s investments at June 30, 2014, were as follows:
Investment Type Amount
State Treasurer’s investment pool 5 $18,214,185
County Treasurer’s investment pool 21,404,118
Total $39,618,303
The State Board of Investment provides oversight for the State Treasurer’s pools. The fair
value of a participant’s position in the pool approximates the value of that participant’s pool
shares, and the participant’s shares are not identified with specific investments. No
comparable oversight is provided for the County Treasurer’s investment pool, and that pool’s
structure does not provide for shares.
Credit risk—The District does not have a formal policy for credit risk. At June 30, 2014, credit
risk for the District’s investments was as follow:
Investment Type Rating Rating Agency Amount
State Treasurer’s investment pool 5 AAAf/S1+ Standard and Poor’s $18,214,185
County Treasurer’s investment pool Unrated Not applicable 21,404,118
Total $39,618,303
Custodial Credit Risk—For an investment, custodial credit risk is the risk that, in the event of
the counterparty’s failure, the District will not be able to recover the value of its investments
or collateral securities that are in an outside party’s possession. The District does not have
a formal investment policy for custodial credit risk.
Concentration of Credit Risk—The District does not have a formal policy for concentration of
credit risk.
Interest Rate Risk—The District does not have a formal policy for interest rate risk. At
June 30, 2014, the District had the following investments in debt securities:
Investment Type
Amount
Weighted Average
Maturity
State Treasurer’s investment pool 5 $18,214,185 1.4 months
County Treasurer’s investment pool 21,404,118 39.6 months
Total $39,618,303
A reconciliation of cash, deposits, and investments to amounts shown on the Statement of
Net Position follows:
Cash, deposits, and investments: Statement of Net Position:
Cash on hand $ 5,510 Cash and investments $40,346,816
Amount of deposits 1,335,715 Restricted assets:
Amount of investments 39,618,303 Cash and investments 612,712
Total $40,959,528 Total $40,959,528
33
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 3 - Capital Assets
Capital asset activity for the year ended June 30, 2014, was as follows:
Balance
July 1, 2013 Increases Adjustments
Decreases
Balance
June 30, 2014
Capital assets not being depreciated:
Land $ 709,291 $ 709,291
Construction in progress 3,672,615 $1,832,137 $5,378,982 125,770
Total capital assets not being
depreciated
4,381,906
1,832,137
5,378,982
835,061
Capital assets being depreciated:
Buildings 34,023,853 5,362,511 $ 7,900 $39,394,264
Equipment 6,140,279 648,351 (7,900) 63,148 6,717,582
Improvements other than buildings 9,565,352 16,471 9,581,823
Library books 599,889 59,286 50,667 608,508
Total capital assets being
depreciated
50,329,373
6,086,619
-
113,815
56,302,177
Less accumulated depreciation for:
Buildings $ 9,910,815 $ 864,750 $10,775,565
Equipment 3,308,969 618,243 $ 87,353 $ 37,551 3,977,014
Improvements other than buildings 2,451,610 306,168 2,757,778
Library books 338,658 49,323 50,667 337,314
Total accumulated depreciation 16,010,052 1,838,484 87,353 88,218 17,847,671
Total capital assets being
depreciated, net
34,319,321
4,248,135
(87,353)
25,597
38,454,506
Capital assets, net $38,701,227 $6,080,272 $(87,353) $5,404,579 $39,289,567
Note 4 - Construction Commitments
The District had major contractual commitments related to various capital projects at June 30,
2014, for remodeling projects on the Painted Desert Campus located in Holbrook, the Silver
Creek Campus located in Snowflake/Taylor, the White Mountain Campus located in Show
Low, the Little Colorado Campus located in Winslow, and the Whiteriver Center located in
Whiteriver. At June 30, 2014, the District had spent $126,000 on these projects and had
remaining contractual commitments with contractors of $1,162,000. These projects are being
financed by unrestricted net position designated by the District Governing Board for these
purposes.
34
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 5 - Long-Term Liabilities
The following schedule details the District’s long-term liability and obligation activity for the
year ended June 30, 2014:
Balance
July 1, 2013 Additions Reductions
Balance
June 30, 2014
Due within
1 year
Compensated absences payable $375,828 $349,631 $320,378 $405,081 $303,811
Capital leases payable 74,336 16,591 57,745 17,854
Total long-term liabilities $450,164 $349,631 $336,969 $462,826 $321,665
Capital leases—The District has acquired printing and duplicating equipment under the
provisions of long-term lease agreements classified as capital leases for accounting
purposes because they provide for a bargain purchase option.
The assets acquired through capital leases are as follows:
Equipment $96,587
Less: accumulated depreciation 19,317
Net carrying value $77,270
The following schedule details debt service requirements to maturity for the District’s capital
leases payable at June 30, 2014:
Year ending June 30
2015 $22,251
2016 22,251
2017 22,251
Total minimum lease payments 66,753
Less amount representing interest 9,008
Present value of net minimum lease payments $57,745
Note 6 - Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
District participates with other Arizona community college districts and school districts in the
Arizona School Risk Retention Trust, Inc. (Trust), a public entity risk pool. The Trust insures
the District against liabilities arising from general liability, professional liability, property,
automobile, and commercial crime risks. The coverage limit for general liability is $50 million
with no deductible except for employer’s liability which is $500,000. The coverage limit for
professional liability is $10 million with no deductible. The coverage limit for property
insurance is $49 million with a $1,000 deductible. The coverage limit for automobile liability
is $10 million with no deductible. The coverage limit for commercial crime is $1.5 million with
a $100 deductible.
35
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
The Trust’s operating agreement includes a provision for the member to be charged an
additional assessment in the event that total claims paid by the Trust exceed the members’
contributions and reserves in any one year. The District will be charged for any such
assessment in the following year. The District has never been charged such an assessment.
The District also carries commercial insurance for other risks of loss, including workers’
compensation, employees’ health, accidental death and dismemberment for students and
employees, employee travel, and extended reporting for errors and omissions. Settled claims
resulting from these risks have not exceeded commercial insurance coverage in the past 3
fiscal years. There were no uninsured losses in the year ended June 30, 2014. The no-fault
mold coverage is limited to $25,000 per campus and covers direct physical loss or damage
caused by fungus, wet or dry rot, or bacteria, including the cost of removal and the cost for
clearance testing. The limitation is for mold damage not linked to a specific occurrence.
Property damage insurance continues to be available for occurrences reported within 30
days of the event.
The District participates with several local school districts in the Navajo County Schools
Employee Benefit Trust (Trust). The District uses the Trust to manage risks of loss related to
employee health and accident claims. The Trust is a public entity risk pool operating as a
common risk management and insurance program for its member school districts. The Trust
is funded by irrevocable contributions from the District for employee coverage and from
employees for dependent coverage. The Trust, which is managed by a separate board of
directors, allows the fund to be self-funded, insured, or both. Additionally, if the Trust
becomes insolvent, the District may be assessed, on a pro-rata basis, an additional
assessment not to exceed the amount of the annual contribution. Should the District withdraw
from the Trust, it would then be responsible for its proportional share of claims and would
forfeit all rights to the return of any surplus, unearned contributions, or other legally permitted
distributions from the Trust. Whether the District withdraws or the Trust becomes insolvent,
the District remains liable for assessments for liabilities of the Trust incurred during the
District’s period of membership in the Trust. The Trust has not assessed the District any
additional assessments above its annual contribution in any of the past 3 fiscal years.
Note 7 - Operating Leases
The District leases land, classroom and office space, information systems equipment, and
vehicles under the provisions of various long-term lease agreements classified as operating
leases for accounting purposes. Rental expenses under the terms of the operating leases
were $367,026 for the year ended June 30, 2014. The operating leases have remaining
noncancelable terms of 1 to 9 years and provide renewal options.
Of the current rental expenses, $32,955 was paid to the Foundation. The nature of the
relationship between the District and the Foundation is stated in Note 10. The District entered
into an operating lease with the Foundation for a building and parking lot. The term of the lease
began February 14, 2006, and continues to February 13, 2015. There is a step-down rental
provision of 20 percent that began March 1, 2011, and continues each March 1 thereafter.
36
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
The following future minimum payments were required under the operating leases at
June 30, 2014:
Year ending June 30
2015 $ 278,640
2016 227,991
2017 186,329
2018 178,050
2019 136,369
2020-2024 142,773
Total minimum lease payments $1,150,152
Note 8 - Pension and Other Postemployment Benefits
Plan descriptions—The District contributes to a cost-sharing, multiple-employer defined
benefit pension plan; a cost-sharing, multiple-employer defined benefit health insurance
premium benefit plan; and a cost-sharing, multiple-employer defined benefit long-term disability
plan, all of which the Arizona State Retirement System administers. The Arizona State
Retirement System (through its Retirement Fund) provides retirement (i.e., pension), death,
and survivor benefits; the Health Benefit Supplement Fund provides health insurance premium
benefits (i.e., a monthly subsidy); and the Long-Term Disability Fund provides long-term
disability benefits. State statute establishes benefits. The Arizona State Retirement System
Board governs the system according to the provisions of A.R.S. Title 38, Chapter 5, Article 2.
The System issues a comprehensive annual financial report that includes financial statements
and required supplementary information. The most recent report is available on its web site at
www.azasrs.gov; by writing the Arizona State Retirement System, 3300 N. Central Ave., P.O.
Box 33910, Phoenix, AZ 85067-3910; or by calling (602) 240-2000 or 1-800-621-3778.
Funding policy—The Arizona State Legislature establishes and may amend active plan
members’ and the District’s contribution rates. For the year ended June 30, 2014, statute
required active plan members to contribute at the actuarially determined rate of 11.54 percent
(11.3 percent for retirement and 0.24 percent for long-term disability) of the members’ annual
covered payroll and statute required the District to contribute at the actuarially determined
rate of 11.54 percent (10.7 percent for retirement, 0.6 percent for health insurance premium
benefit, and 0.24 percent for long-term disability) of the members’ annual covered payroll.
The District’s contributions for the current and 2 preceding years, all of which were equal to
the required contributions, were as follows:
Year ended June 30,
Retirement
Fund
Health Benefit
Supplement Fund
Long-Term
Disability Fund
2014 $1,223,689 $68,618 $27,438
2013 1,156,519 73,340 27,076
2012 968,778 61,837 23,940
37
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 9 - Operating Expenses
The District’s operating expenses are presented by functional classification in the Statement
of Revenues, Expenses, and Changes in Net Position – Primary Government. The operating
expenses can also be classified into the following:
Compensation and benefits $17,200,507
Contract services 2,243,436
Supplies and other services 3,550,497
Communications and utilities 1,086,284
Scholarships 2,240,669
Depreciation 1,838,484
Other 61,033
Total $28,220,910
The District uses credit cards to pay certain vendors for goods or services. The District did
not receive any reward, discount, incentive or other financial consideration resulting from
credit card payments for the year ended June 30, 2014.
Note 10 - Discretely Presented Component Unit Disclosures
A. Summary of Significant Accounting Policies
The significant accounting policies of the Foundation and NATC are described below to
enhance the usefulness of the financial statements to the reader.
Nature of the Component Units—The Foundation is a not-for-profit corporation operating
in accordance with Section 501(c)(3) of the Internal Revenue Code. The Foundation is
located in Snowflake, AZ, and provides supplemental philanthropic support for students, and
programs and services that advance the mission of Northland Pioneer College (College). The
Foundation receives cash contributions, gifts, membership dues, and rental income,
administers and invests securities and property, conducts special-event fundraisers, and
disburses payments to the College for educational purposes.
NATC is a not-for-profit corporation operating in accordance with Section 501(c)(3) of the
Internal Revenue Code. NATC owns and operates a regional training center located in
Taylor, AZ, which is utilized by Fire and Law Enforcement personnel throughout Northeast
Arizona. NATC derives its operating revenues primarily through membership dues paid by
the various user agencies and through user fees charged to other private organizations.
Basis of Accounting—The financial statements of the Foundation and NATC have been
prepared on the accrual basis of accounting. All revenues received for support of current
operations are immediately recorded as revenues while revenues received for support of
future operations are deferred and recognized over the periods to which the revenues relate.
38
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Financial Statement Presentation—The Foundation and NATC are required to report
information regarding its financial position and activities according to three classes of net
assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted
net assets.
Income Taxes—The Foundation and NATC are exempt from federal and state income taxes
under Section 501(c)(3) of the Internal Revenue Code and Section 43-1201 of the Arizona
Revised Statutes. Therefore, the accompanying financial statements contain no provision or
liability for income taxes. In addition, the Foundation qualifies for the charitable deduction
under Internal Revenue Section 170(b)(1)(A).
The Foundation and NATC file informational tax returns with the U.S. federal and Arizona
state governments.
Use of Estimates—The preparation of financial statements in conformity with generally
accepted accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents—The Foundation and NATC recognize highly liquid
investments with an original maturity of three months or less as cash equivalents and are
stated at fair value.
Investments—The Foundation recognizes investments in marketable securities with readily
determinable fair values and all investments in debt securities at their fair values in the
Statement of Financial Position. Unrealized gains and losses are included in the change in
net assets.
NATC has no investments as of June 30, 2014.
Property & Equipment—The Foundation capitalizes purchased property and equipment,
with estimated useful lives of more than one year, at cost. Donations of property and
equipment are recorded as contributions at their estimated fair value on the date of donation.
Such donations are reported as unrestricted contributions unless the donor has restricted the
donated asset to a specific purpose. Assets donated with explicit restrictions regarding their
use and contributions of cash that must be used to acquire property and equipment are
reported as restricted contributions. Property and equipment are depreciated using the
straight-line method over the estimated useful lives of the related assets, which range from
10 to 40 years.
NATC capitalizes purchased property and equipment with a cost of $5,000 or more and
having estimated useful lives of more than one year. Property and equipment are recorded
at cost or, for donated items, at their estimated fair value on the date of donation. Property
and equipment are depreciated using the straight-line method over the estimated useful lives
of the related assets, which range from 5 to 50 years.
39
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Contributions—The Foundation and NATC record contributions received as unrestricted,
temporarily restricted, or permanently restricted support depending on the existence and/or
nature of any donor restrictions.
Endowment Funds—The Foundation is subject to an enacted version of the Uniform
Prudent Management of Institutional Funds Act (UPMIFA), which requires enhanced
disclosures for all its endowment funds. UPMIFA provides the Foundation with guidance on
accounting for the net asset classification of such endowment funds.
Property Held for Sale—The Foundation receives certain assets from donors that are held
for resale. Such assets are recorded at their approximate fair market values at the date of
donation. Property held for sale as of June 30, 2014 is reported as real estate investments.
Date of Management’s Review—Management has reviewed events subsequent to
June 30, 2014, up through the financial statements report date, for the Foundation,
September 16, 2014, and for NATC, August 8, 2014. Management has also reviewed events
subsequent to the component units financial statement report date up through the District’s
financial statements report date to evaluate their effect on the fair presentation of the financial
statements. The following subsequent events are being disclosed.
Subsequent to June 30, 2014 the Foundation has been reorganized with a new Board of
Directors and a new Executive Director. The name of the Foundation has been changed to
NPC Friends and Family, Inc. It will continue to act primarily as a fund-raising organization
that receives gifts and bequests, administers those resources, and disburses payments to or
on the behalf of the District for scholarships and other educational purposes.
Effective October 16, 2014, the Foundation sold the building and parking lot it owned in
Holbrook, Arizona, which was leased to the District for general office spaces. This resulted
in termination of the operating lease the District had with the Foundation.
B. Cash
The total cash held by the Foundation and NATC at June 30, 2014, are as follows:
Foundation NATC
Checking $10,661 $66,719
Money market 17,990
Savings 8,307
$36,958 $66,719
Unrestricted cash $33,788 $66,719
Restricted cash 3,170
$36,958 $66,719
40
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
C. Investments
For the year ended June 30, 2014, the Foundation had investments consisting of marketable
securities held with Edward Jones and real estate comprising several lots of land. The
marketable securities have a fair value of $127,497 and the real estate value was
approximately $8,000 as of June 30, 2014.
NATC had no investments as of June 30, 2014.
D. Property and Equipment
The total property and equipment held by the Foundation and NATC at June 30, 2014, are
as follows:
Foundation NATC
Land $ 10,000 $ 110,000
Buildings 50,000 293,971
Furniture & equipment 2,233
Training facilities 2,082,781
62,233 2,486,752
Less accumulated depreciation (29,252) (626,291)
$ 32,981 $1,860,461
E. Restrictions on Net Assets
The Foundation had temporarily restricted net assets in the amount of $64,542 as of June 30,
2014, consisting of donated contributions and investment earnings, which are available for
scholarships in future years. The Foundation had permanently restricted net assets of
$66,125 as of June 30, 2014, representing endowed scholarship funds.
NATC had no restricted net assets as of June 30, 2014.
F. Endowment Funds
The Foundation’s endowment consists of a fund established for the Martia A. Smith Memorial
Art Scholarship.
As required by generally accepted accounting principles, net assets associated with
endowment funds, including funds designated by the Board of Directors to function as
endowments, are classified and reported based on the existence or absence of donor-imposed
restrictions.
The Board of Directors of the Foundation has interpreted UPMIFA as requiring the
preservation of the fair value of the original gift as of the gift date of the donor-restricted
41
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
endowment funds absent explicit donor stipulations to the contrary. As a result of this
interpretation, the Foundation classifies as permanently restricted net assets the original
value of gifts donated to the permanent endowment and the original value of subsequent
gifts to the permanent endowment.
The remaining portion of the donor-restricted endowment fund that is not classified in
permanently restricted net assets is classified as temporarily restricted net assets until those
amounts are appropriated for expenditure by the Foundation in a manner consistent with the
standard of prudence prescribed by UPMIFA.
NATC had no endowment funds as of June 30, 2014.
G. Related Parties
For a portion of the year ended June 30, 2014, the Foundation subcontracted its Executive
Director and made payments to Chugg Financial Services, LLC, a company that is owned
and operated by its former Executive Director.
The Foundation owns a building and parking lot in Holbrook, Arizona, which was leased to
NPC for general offices during the year ended June 30, 2014. Effective October 16, 2014,
the Foundation sold the building and parking lot. This resulted in termination of the operating
lease the District had with the Foundation.
NPC provides certain use of facilities and staff services which benefits NATC. However, since
these provided facilities and services also benefit NPC’s educational programs, no value for
these amounts are recorded on NATC’s financial statements.
NPC also leases the training facility and equipment on a year to year lease. The lease income
to NATC from NPC was $26,000 for the year ended June 30, 2014.
This note should be read in conjunction with Note 7 on operating leases.
42
Statistical Section
Statistical Section Introduction
In accordance with Governmental Accounting Standards Boards Statement No. 44,
Economic Condition Reporting: This is the statistical section of Navajo County Community
College District’s (the District) CAFR (comprehensive annual financial report). The
information in this section is presented in detail and is compiled data over ten years that
addresses key areas that relate to the overall nature of the institution.
Financial Trends
These schedules contain trend information to help the reader understand how the District’s
financial performance and well-being have changed over-time.
Revenue Capacity
These schedules contain information to help the reader assess the District’s most
significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
District’s current levels of outstanding debt and the District’s ability to issue additional
debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the District’s financial report relates to the services the District
provides and the activities it performs.
43
2013-14 2012-13 2011-12 2010-11 2009-10
Primary government
Net investment in capital assets $ 39,231,822 $ 38,626,891 $ 33,030,762 $ 31,503,651 $ 32,314,878
Restricted 6 12,712 6 91,628 7 35,512 7 17,570 7 16,192
Unrestricted 40,454,224 37,382,691 38,388,993 34,195,371 25,496,949
Total primary government net position $ 80,298,758 $ 76,701,210 $ 72,155,267 $ 66,416,592 $ 58,528,019
2008-09 2007-08 2006-07 2005-06 2004-05
Primary government
Net investment in capital assets $ 33,252,059 $ 30,693,926 $ 28,703,360 $ 27,003,288 $ 24,269,466
Restricted 7 50,289 5 60,887 4 17,583 7 2,871 1 31,260
Unrestricted 16,951,989 13,723,069 10,881,445 9,030,144 7,001,864
Total primary government net position $ 50,954,337 $ 44,977,882 $ 40,002,388 $ 36,106,303 $ 31,402,590
Source:
Audited financial statements.
Navajo County Community College District
(Northland Pioneer College)
Net Position by Component
Last Ten Fiscal Years
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Net Position by Component
Net investment in capital assets Restricted Unrestricted
44
2013-14 2012-13 2011-12
(1)
2010-11
(2)
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Operating revenues:
Tuition and fees,
net scholarship allowances $ 2,295,137 $ 2,466,640 $ 2,690,260 $ 2,319,373 $ 3,062,113 $ 2,824,047 $ 2,483,223 $ 2,361,668 $ 2,390,338 $ 1,996,874
Government contracts (3) 3,156,936 2,969,273 2,638,049 2,060,376 1,868,359 2,058,901 3 ,032,846 1,014,145 1,511,652 1,469,989
Bookstore income, net of
scholarship allowances 6 6,720 42,460 33,564 28,892 701,123 803,661 995,347 678,774 849,174 808,569
Other 352,295 379,831 291,648 369,299 297,825 247,370 172,720 211,818 231,919 222,363
Total operating revenues 5,871,088 5,858,204 5,653,521 4,777,940 5,929,420 5,933,979 6,684,136 4,266,405 4,983,083 4,497,795
Operating expenses:
Instruction 9,761,727 9,660,102 8,827,606 8,450,971 9,067,801 10,565,902 10,355,967 9,305,328 9,299,812 9,316,065
Public service 3 5,889 29,387 25,647 13,128 14,178 14,126 12,562 9 ,548 10,020 15,388
Academic support 1,046,927 1,047,037 1,009,880 996,556 985,173 785,099 803,190 817,101 874,888 815,634
Student services 2,143,989 2,151,538 2,015,021 1,532,942 3,750,620 3,364,710 3,018,052 2,585,022 2,395,805 2,571,292
Institutional Support 8,475,611 8,308,926 8,481,782 6,681,808 7,151,218 7,814,683 7,141,298 6,789,420 5,583,393 5,008,757
Operation and maintenance
of plant 2,118,547 1,867,890 1,758,007 1,563,034 1,599,258 2,037,490 2,182,091 1,725,738 1,831,712 1,673,191
Scholarships 2,240,669 2,570,647 3 ,094,923 3 ,128,320 609,337 980,151 630,161 602,880 555,108 511,772
Auxiliary enterprises 5 59,067 4 51,470 404,767 1,217,755 1,270,886 1,547,548 1,508,514 1,551,240 1,479,195 1,446,337
Depreciation 1,838,484 1,544,414 1 ,366,808 1 ,320,494 1,435,550 1 ,234,076 2 ,195,985 1 ,130,750 1 ,132,385 1 ,086,783
Total operating expenses 28,220,910 27,631,411 26,984,441 24,905,008 25,884,021 28,343,785 27,847,820 24,517,027 23,162,318 22,445,219
Operating loss ( 22,349,822) (21,773,207) (21,330,920) (20,127,068) (19,954,601) (22,409,806) (21,163,684) (20,250,622) (18,179,235) (17,947,424)
Nonoperating revenues
(expenses):
Property taxes 13,153,327 13,180,294 12,703,703 11,988,497 11,353,707 12,321,619 11,651,832 11,022,566 11,122,948 9,749,809
State appropriations 7,160,800 7,059,800 8,181,800 10,214,000 10,214,000 9,807,911 9,717,500 7,784,925 7,147,900 6,547,100
Government grants (3) 4,740,596 5,018,111 5,502,290 4,955,825 4,956,184 5,083,645 3,146,431 3,266,321 3,241,987 3,402,668
Private grants (4) 304,219 325,919 360,370 345,534 450,763 529,310 871,651 636,211 339,768 255,835
Share of state sales taxes 435,192 545,682 372,308 386,743 422,737 453,912 487,131 512,032 474,307 456,613
Investment earnings 148,526 170,717 136,283 124,907 130,891 257,027 502,903 540,886 205,191 155,540
Interest expense (5,138) - (6,854) (3,428) - (67,163) (131,411) (185,709) (226,053) (274,389)
Gain/(loss) on disposal of
capital assets (112,752) 1 8,627 (180,305) 3 ,563 - - (612,459) - - -
Other - - - - - - - - - (191,774)
Total nonoperating revenues
and expenses 25,824,770 26,319,150 27,069,595 28,015,641 27,528,282 28,386,261 25,633,578 23,577,232 22,306,048 20,101,402
Income before other revenues,
expenses, gains or loss 3,474,948 4,545,943 5,738,675 7,888,573 7,573,682 5,976,455 4,469,894 3,326,610 4,126,813 2,153,978
Capital appropriations 122,600 - - - - - 505,600 569,475 576,900 586,300
Increase in net position 3,597,548 4,545,943 5,738,675 7,888,573 7,573,682 5,976,455 4,975,494 3,896,085 4,703,713 2,740,278
Total net position, July 1 76,701,210 72,155,267 66,416,592 58,528,019 50,954,337 44,977,882 40,002,388 36,106,303 31,402,590 28,662,312
Total net position, June 30 $ 80,298,758 $ 76,701,210 $ 72,155,267 $ 66,416,592 $ 58,528,019 $ 50,954,337 $ 44,977,882 $ 40,002,388 $ 36,106,303 $ 31,402,590
Source:
Audited financial statements except as reclassified in (3) and (4).
Notes:
(4) In fiscal year 2011-12, Private grants were adjusted to reclassify the amounts from operating to nonoperating revenues. For comparability purposes, prior years have been
reclassified.
Navajo County Community College District
(Northland Pioneer College)
Changes in Net Position
Last Ten Fiscal Years
(1) Starting in fiscal year 2011-12, Tuition and fees, net of scholarship allowances and Government contracts were adjusted to reclassify tuition waivers associated with an
intergovernment agreement as a scholarship allowance.
(3) In fiscal year 2007-08, Government grants, which were included with Government contracts, were reclassified from operating revenues to nonoperating revenues. For
comparability purposes, prior years have been reclassified.
(2) Starting in fiscal year 2010-11, expenses for Scholarships and Students services were adjusted to reclassify payments made to students for student financial aid and scholarships.
These payments were reported as Student services in prior years.
45
2013-14 2012-13 2011-12 2010-11 (1) 2009-10
Instruction $ 9,761,727 $ 9,660,102 $ 8,827,606 $ 8,450,971 $ 9,067,801
Public service 3 5,889 29,387 25,647 13,128 14,178
Academic support 1,046,927 1,047,037 1,009,880 9 96,556 9 85,173
Student services 2,143,989 2,151,538 2,015,021 1,532,942 3,750,620
Institutional support 8,475,611 8,308,926 8,481,782 6,681,808 7,151,218
Operation and maintenance of plant 2,118,547 1,867,890 1,758,007 1,563,034 1,599,258
Scholarships 2,240,669 2,570,647 3,094,923 3,128,320 6 09,337
Auxiliary enterprises 5 59,067 4 51,470 4 04,767 1,217,755 1,270,886
Depreciation 1,838,484 1,544,414 1,366,808 1,320,494 1,435,550
Total operating expenses 28,220,910 27,631,411 26,984,441 24,905,008 25,884,021
Interest expense 5,138 - 6,854 3,428 -
Loss on disposal of capital assets 1 12,752 - 1 80,305 - -
Other - - - - -
Total nonoperating expenses 1 17,890 - 1 87,159 3,428 -
Total expenses $ 28,338,800 $ 27,631,411 $ 27,171,600 $ 24,908,436 $ 25,884,021
2008-09 2007-08 2006-07 2005-06 2004-05
Instruction $ 10,565,902 $ 10,355,967 $ 9,305,328 $ 9,299,812 $ 9,316,065
Public service 1 4,126 1 2,562 9 ,548 1 0,020 1 5,388
Academic support 7 85,099 8 03,190 8 17,101 8 74,888 8 15,634
Student services 3,364,710 3,018,052 2,585,022 2,395,805 2,571,292
Institutional support 7,814,683 7,141,298 6,789,420 5,583,393 5,008,757
Operation and maintenance of plant 2,037,490 2,182,091 1,725,738 1,831,712 1,673,191
Scholarships 9 80,151 6 30,161 6 02,880 5 55,108 5 11,772
Auxiliary enterprises 1,547,548 1,508,514 1,551,240 1,479,195 1,446,337
Depreciation 1,234,076 2,195,985 1,130,750 1,132,385 1,086,783
Total operating expenses 28,343,785 27,847,820 24,517,027 23,162,318 22,445,219
Interest expense 6 7,163 1 31,411 1 85,709 2 26,053 2 74,389
Loss on disposal of capital assets - 6 12,459 - - -
Other - - - - 1 91,774
Total nonoperating expenses 6 7,163 7 43,870 1 85,709 2 26,053 4 66,163
Total expenses $ 28,410,948 $ 28,591,690 $ 24,702,736 $ 23,388,371 $ 22,911,382
Source:
Audited financial statements.
Note:
Navajo County Community College District
(Northland Pioneer College)
Expenses by Function
Last Ten Fiscal Years
(1) Starting in fiscal year 2010-11, expenses for Scholarships and Student services were adjusted to reclassify payments made to students for student financial aid and
scholarships. These payments were reported as Student services in prior years.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Total Operating Expenses
Total operating expenses (1)
46
2013-14 2012-13 2011-12 2010-11 (2) 2009-10
Compensation and benefits (1) $ 17,200,507 $ 16,939,312 $ 15,550,537 $ 14,290,694 $ 15,122,656
Contract services 2,243,436 2,138,098 2,680,066 1,621,476 1,729,224
Supplies and other services 3,550,497 3,223,900 3,086,612 3,289,474 5,399,355
Communications and utilities 1,086,284 1,191,308 1,183,082 1,232,953 1,399,939
Scholarships 2,240,669 2,570,647 3,094,923 3,128,320 609,337
Depreciation 1,838,484 1,544,414 1,366,808 1,320,494 1,435,550
Other 61,033 23,732 22,413 21,597 187,960
Total operating expenses 28,220,910 27,631,411 26,984,441 24,905,008 25,884,021
Non operating expenses 117,890 - 187,159 3,428 -
Total expenses $ 28,338,800 $ 27,631,411 $ 27,171,600 $ 24,908,436 $ 25,884,021
2008-09 2007-08 2006-07 2005-06 2004-05
Compensation and benefits (1) $ 16,822,406 $ 19,258,989 $ 17,481,916 $ 15,806,791 $ 15,680,065
Contract services 2,268,681 2,197,358 2,634,480 2,010,141 1,989,023
Supplies and other services 4,960,590 1,562,855 994,203 1,072,670 1,063,039
Communications and utilities 1,520,225 1,530,845 1,494,933 1,191,012 1,149,169
Scholarships 980,151 630,161 602,880 555,108 511,772
Depreciation 1,234,076 2,195,985 1,130,750 1,132,385 1,086,783
Other 557,656 471,627 177,865 1,394,211 965,368
Total operating expenses 28,343,785 27,847,820 24,517,027 23,162,318 22,445,219
Non operating expenses 67,163 743,870 185,709 226,053 466,163
Total expenses $ 28,410,948 $ 28,591,690 $ 24,702,736 $ 23,388,371 $ 22,911,382
Source:
Audited financial statements except as adjusted in (3).
Notes:
(3) In fiscal year 2006-07, Other was adjusted for rounding to match Total operating expenses in the Statement of Revenues, Expenses, and
Changes in Net Assets.
(1) Starting in fiscal year 2013-14, Compensation and benefits replaced Personal services to more accurately describe the expense category.
(2) Starting in fiscal year 2010-11, expenses for Scholarships and Students services were adjusted to reclassify payments made to students for
student financial aid and scholarships. These payments were reported as Supplies and other services in prior year.
Navajo County Community College District
(Northland Pioneer College)
Expenses by Use
Last Ten Fiscal Years
61%
8%
12%
4%
8%
6%
1%
FY13-14 Expenses by Use
Compensation and benefits (1) Contract services
Supplies and other services Communications and utilities
Scholarships Depreciation
Other - operating & nonoperating
68%
9%
5%
5%
2% 5% 6%
FY04-05 Expenses by Use
Compensation and benefits (1) Contract services
Supplies and other services Communications and utilities
Scholarships Depreciation
Other - operating & nonoperating
47
Navajo County Community College District
(Northland Pioneer College)
Revenues by Source
Last Ten Fiscal Years
2013-14 2012-13 2011-12 (1) 2010-11 2009-10
Tuition and fees, net $ 2,295,137 $ 2,466,640 $ 2,690,260 $ 2,319,373 $ 3,062,113
Government contracts (2) 3,156,936 2,969,273 2,638,049 2,060,376 1,868,359
Bookstore income, net 6 6,720 42,460 33,564 28,892 7 01,123
Other 352,295 379,831 291,648 369,299 2 97,825
Total operating revenue 5,871,088 5,858,204 5,653,521 4,777,940 5,929,420
Property taxes 13,153,327 13,180,294 12,703,703 11,988,497 11,353,707
State appropriations 7,160,800 7,059,800 8,181,800 10,214,000 10,214,000
Government grants (2) 4,740,596 5,018,111 5,502,290 4,955,825 4,956,184
Private grants (3) 3 04,219 3 25,919 3 60,370 3 45,534 4 50,763
Share of state sales taxes 4 35,192 5 45,682 3 72,308 3 86,743 4 22,737
Investment earnings 1 48,526 1 70,717 1 36,283 1 24,907 1 30,891
Gain on disposal of capital assets - 18,627 - 3,563 -
Total nonoperating revenues 25,942,660 26,319,150 27,256,754 28,019,069 27,528,282
Capital appropriations 122,600 - - - -
Total revenues $ 31,936,348 $ 32,177,354 $ 32,910,275 $ 32,797,009 $ 33,457,702
2008-09 2007-08 2006-07 2005-06 2004-05
Tuition and fees, net $ 2,824,047 $ 2,483,223 $ 2,361,668 $ 2,390,338 $ 1,996,874
Government contracts (2) 2,058,901 3,032,846 1,014,145 1,511,652 1,469,989
Bookstore income, net 8 03,661 9 95,347 6 78,774 8 49,174 8 08,569
Other 247,370 172,720 211,818 231,919 2 22,363
Total operating revenue 5,933,979 6,684,136 4,266,405 4,983,083 4,497,795
Property taxes 12,321,619 11,651,832 11,022,566 11,122,948 9,749,809
State appropriations 9,807,911 9,717,500 7,784,925 7,147,900 6,547,100
Government grants (2) 5,083,645 3,146,431 3,266,321 3,241,987 3,402,668
Private grants (3) 5 29,310 8 71,651 6 36,211 3 39,768 2 55,835
Share of state sales taxes 4 53,912 4 87,131 5 12,032 4 74,307 4 56,613
Investment earnings 2 57,027 5 02,903 5 40,886 2 05,191 1 55,540
Gain on disposal of capital assets - - - - -
Total nonoperating revenues 28,453,424 26,377,448 23,762,941 22,532,101 20,567,565
Capital appropriations - 505,600 569,475 576,900 5 86,300
Total revenues $ 34,387,403 $ 33,567,184 $ 28,598,821 $ 28,092,084 $ 25,651,660
Source:
Audited financial statements except as reclassified in (2) and (3).
Notes:
(1) Starting in fiscal year 2011-12, Tuition and fees, net of scholarship allowances and Government contracts were adjusted to reclassify tuition
waivers associated with an intergovernment agreement as a scholarship allowance.
(2) In fiscal year 2007-08, Government grants, which were included with Government contracts, were reclassified from operating revenues to
nonoperating revenues. For comparability purposes, prior years have been reclassified.
(3) In fiscal year 2011-12, Private grants were adjusted to reclassify the amounts from operating to nonoperating revenues. For comparability
purposes, prior years have been reclassified.
Tuition and
fees, net
7% Government
contracts/
grants
25%
Property
taxes
41%
State/Capital
appropriations
23%
Share of
state sales
taxes
1%
Other
3%
FY13-14 Revenues by Source
Tuition and
fees, net
8%
Government
contracts/
grants
19%
Property
taxes
38%
State/Capital
appropriations
28%
Share of
state sales
taxes
2%
Other
5%
FY04-05 Revenues by Source
48
Fiscal Year Statutory Budgeted Amount
Expenditure Expeditures Under/(Over)
Limitation Subject to Expenditure
(1) Limitation (2) Limitation
2013-14 $ 14,894,360 $ 14,894,360 - (3)
2012-13 15,978,265 15,561,404 416,861
2011-12 16,251,916 15,751,979 499,937
2010-11 17,086,770 14,738,989 2,347,781
2009-10 16,823,427 15,515,610 1,307,817
2008-09 15,829,197 15,950,154 (120,957) (4)
2007-08 16,100,110 15,416,094 684,016
2006-07 16,284,904 16,202,909 81,995
2005-06 16,278,691 15,915,946 362,745
2004-05 $ 15,891,525 $ 14,429,617 $ 1,461,908
Source:
Audited annual budgeted expenditure limitation reports.
Notes:
(2) Budgeted expenditures are net of allowable exclusions.
Expenditure Limitation
Navajo County Community College District
(Northland Pioneer College)
(4) The District exceeded its expenditure limitation due to the expenditure of
revenues from amounts received from retail bookstore transactions in the
amount of $1,326,751. According to Laws 2006, Chapter 198, if a community
college exceeds its expenditure limitation due to the expenditures of revenues
from amounts received from retail transactions at bookstores operated by a
community college district, the community college shall not have any state aid
withheld pursuant to section 15-1466, Arizona Revised Statutes.
(1) The Statutory Expenditure Limitation is calculated by the Arizona Department
of Revenue Economic Estimates Commission and applies to Current (General,
Auxiliary Enterprises, and Restricted) and Plant Funds (Unexpended and
Retirement of Indebtedness).
(3) Budgeted expenditures for fiscal year 2014 is an estimate, audited numbers
not yet available.
Last Ten Fiscal Years
Statutory Limit to Budgeted Expenditures
49
Fiscal
Year
Centrally
Assessed
(1)
Locally
Assessed
Real Property
(1)
Locally
Assessed
Personal
Property
(1)
Total
Assessed Value
Total
Direct Tax
Rate (2)
Estimated
Actual Value
Assessed
Value as
Percentage of
Actual Value
2013-14 $2 72,274,079 $ 612,397,229 $ 1 8,680,546 $ 903,351,854 1.4769 $ 8,197,385,245 11.02% (3)
2012-13 2 70,501,880 683,203,369 2 0,587,141 974,292,390 1.3515 8,841,128,766 11.02%
2011-12 2 60,662,273 745,626,178 1 9,848,674 1,026,137,125 1.2387 9,354,030,310 10.97%
2010-11 2 34,930,409 802,594,776 2 1,479,665 1,059,004,850 1.1308 9,531,996,850 11.11%
2009-10 2 19,541,850 758,613,629 2 0,609,071 998,764,550 1.1352 8,933,493,292 11.18%
2008-09 2 09,385,295 679,130,430 1 9,841,971 908,357,696 1.3382 8,081,474,164 11.24%
2007-08 2 02,500,639 590,606,733 1 9,206,899 812,314,271 1.4206 7,182,265,880 11.31%
2006-07 2 01,542,336 516,317,059 1 6,977,326 734,836,721 1.4858 6,462,943,896 11.37%
2005-06 1 99,147,834 465,538,343 1 9,247,953 683,934,130 1.5200 6,004,689,464 11.39%
2004-05 $1 91,502,908 $ 431,698,011 $ 2 1,394,346 $ 644,595,265 1.5092 $ 5,684,261,596 11.34%
Source:
District records, Arizona Department of Revenue, Navajo County Finance and Assessor offices.
Notes:
(3) Assessed Value as Percentage of Actual Value for fiscal year 2013-14 is based on prior year, current year information
not available.
(1) Categories presented are based on information provided by the Property Tax Oversight Commission for the Arizona
Department of Revenue. Categories based on Residential, Commercial and Personal Property is not available but is
expected in future years. Centrally assessed property is assessed by the State of Arizona versus the County and includes
railroads, pipelines, utilities and other real property. Assessed values include certain tax exempt properties.
Primary Assessed Valuation
(2) Total Direct Tax Rate includes both primary and secondary tax rates for fiscal years 2008-09 to 2004-05.
Navajo County Community College District
(Northland Pioneer College)
Assessed Valuation, Tax Rate, and Estimated Actual Value
Last Ten Fiscal Years
50
Fiscal Year Total Current Percent of Collections in Total Tax Percent of
Adjusted Tax Current Tax Subsequent Collections Total Tax
Tax Levy Collections Collections Years (2) Collections
(1) (2) to Total (2) to Total
Tax Levy Tax Levy
2013-14 (3) $ 1 3,267,899 $ 12,815,737 96.59% $ - $ 12,815,737 96.59%
2012-13 1 3,059,169 12,671,313 97.03% 355,466 1 3,026,779 99.75%
2011-12 1 2,647,564 12,187,235 96.36% 437,998 1 2,625,233 99.82%
2010-11 1 1,898,901 11,303,655 95.00% 577,314 1 1,880,970 99.85%
2009-10 1 1,331,739 10,769,251 95.04% 550,937 1 1,320,188 99.90%
2008-09 1 2,312,004 11,733,475 95.30% 571,881 1 2,305,356 99.95%
2007-08 1 1,624,490 11,083,456 95.35% 537,940 1 1,621,396 99.97%
2006-07 1 0,967,580 10,529,086 96.00% 436,222 1 0,965,308 99.98%
2005-06 1 0,405,570 9,744,447 93.65% 658,637 1 0,403,084 99.98%
2004-05 $ 9 ,732,077 $ 9,234,450 94.89% $ 496,029 $ 9 ,730,479 99.98%
Source:
Navajo County Treasurer and Assessor Offices and District records.
Notes:
(2) Tax collections are recorded on a cash basis.
Navajo County Community College District
(Northland Pioneer College)
Property Tax Levies and Collections
Last Ten Fiscal Years
(3) In fiscal year 2014 an adjustment was made for a court settlement with Transwestern Pipeline in the
amount of $120,000. This adjustment reduced the tax levies for fiscal years 2013, 2012 and 2011.
(1) The Total Adjusted Tax Levy amounts include cumlative adjustments from the year of levy until the
present year for tax exempt property and/or court settlements.
51
Fiscal
Year
Navajo
County
Primary Secondary Total From To From To From To
2013-14 1.4769 1.4769 0.6995 0.2789 1.1934 0.0500 3.5500 0.4312 8.0000
2012-13 1.3515 1.3515 0.6401 0.2789 0.9880 0.0500 3.5500 0.1255 8.0000
2011-12 1.2387 1.2387 0.5984 0.2789 0.9815 0.0500 3.5500 1.7682 7.2564
2010-11 1.1308 1.1308 0.5572 0.2789 0.8567 0.0500 3.5500 1.4797 8.0000
2009-10 1.1352 1.1352 0.5594 0.2789 0.8550 0.0500 3.5500 1.3726 8.3747
2008-09 1.1719 0.1663 1.3382 0.5775 0.2845 0.8685 0.0500 3.5500 1.4622 7.7773
2007-08 1.2257 0.1949 1.4206 0.6041 0.2845 0.8870 0.0500 3.5500 1.6020 6.7592
2006-07 1.2639 0.2219 1.4858 0.6229 0.5216 0.9134 0.0500 2.6347 1.7394 8.0200
2005-06 1.2857 0.2343 1.5200 0.6337 0.5324 0.9501 0.0500 2.6514 1.8090 8.0200
2004-05 1.2566 0.2526 1.5092 0.6316 0.5610 0.9501 0.0500 2.4450 1.8931 8.0200
Source:
District records and Navajo County Treasurer.
Navajo County Community College District
(Northland Pioneer College)
Property Tax Rates, Direct and Overlapping Governments
Last Ten Years (Per $100 of Assessed Value)
Cities and Towns Fire and Special
Districts
School Districts
Overlapping Rates
Northland Pioneer College
52
Primary Rank Percent of Primary Rank Percent of
Assessed Navajo Assessed Navajo
Valuation County's Valuation County's
Primary Primary
Assessed Assessed
Valuation Valuation
Arizona Public Service Company $ 136,252,482 1 13.98% $ 9 6,593,064 1 15.49%
PacifiCorp Electric Operations 50,214,255 2 5.15% 3 2,473,751 2 5.21%
Transwestern Pipeline Co 17,302,668 3 1.78% 7 ,818,785 6 1.25%
Peabody Western Coal Co 13,825,500 4 1.42% 1 5,712,500 3 2.52%
El Paso Natural Gas Co 8,087,415 5 0.83% 9 ,728,495 5 1.56%
Burlington Northern/Santa Fe Railway 6,782,129 6 0.70% 5 ,184,182 10 0.83%
Citizens Telecom of White Mountains 5,833,729 7 0.60% 1 0,589,603 4 1.70%
Navopache Electric Co-Op Inc 5,666,680 8 0.58% 5 ,430,813 9 0.87%
Smith Bagley 5,279,667 9 0.54% n/a n/a n/a
Unisource Energy Corporation 4,968,246 10 0.51% n/a n/a n/a
Navajo County Assessed Value $ 974,292,390 $ 623,721,601
Source:
Navajo County Finance and Assessor Offices.
Note:
Information presented is based on tax year.
2013 2004
Navajo County Community College District
(Northland Pioneer College)
Principal Taxpayers
Current Year and Nine Years Ago
53
Fiscal Year General Tuition Annual Cost
(1) per Credit Hour per Full-Time Increase (Decrease)
(2) Student Dollars Percent
(3)
2013-14 $ 64 $ 1,920 $ 2 3%
2012-13 62 1,860 2 3%
2011-12 60 1,800 4 7%
2010-11 56 1,680 4 8%
2009-10 52 1,560 4 8%
2008-09 48 1,440 4 9%
2007-08 44 1,320 4 10%
2006-07 40 1,200 (2) -5%
2005-06 42 1,260 4 11%
2004-05 $ 38 $ 1,140 $ 3 9%
Source:
District records.
Notes:
(1) Tuition rate changes are effective beginning the fall term each year.
(3) Full-time students are defined as taking 30 credit hours in an academic year.
(2) For fiscal years 2009-10 and prior, the District utilized a tiered tuition scale featuring plateaus for credit
hours between 3.5 - 7.5 and greater than 12.
District Historic Tuition
Navajo County Community College District
(Northland Pioneer College)
Historic General Resident Tuition
Last Ten Fiscal Years
2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
$64 $62 $60 $56 $52 $48 $44 $40 $42 $38
$1,920 $1,860 $1,800
$1,680
$1,560
$1,440
$1,320
$1,200 $1,260
$1,140
Historic General Resident Tuition
General Tuition per Credit Hour
(2)
Annual Cost per Full-time Student
(3)
54
Fiscal Year General Certificates of Capital Total Per FTSE Per Capita
Obligation Participation Lease Outstanding (1) (2)
Bonds Obligations Debt
2013-14 $ - $ - $ 57,745 $ 57,745 $ 31.64 $ 0.54
2012-13 - - 74,336 74,336 37.89 0.69
2011-12 - - - - - -
2010-11 - - 83,123 83,123 37.46 0.78
2009-10 - - - - - -
2008-09 - - - - - -
2007-08 1,605,000 235,000 - 1,840,000 735.71 16.38
2006-07 3,165,000 455,000 39,446 3,659,446 1,588.30 32.97
2005-06 4,680,000 665,000 116,740 5,461,740 2,268.16 50.11
2004-05 $ 6,155,000 $ 860,000 $ 191,951 $ 7,206,951 $ 2,660.37 $ 67.37
Source:
Audited financial statements, Audited FTSE report, U.S. Bureau of Economic Analysis.
Notes:
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
Navajo County Community College District
(Northland Pioneer College)
(1) Full Time Student Equivalent (FTSE) is based on a fiscal year.
(2) Population data is based on a calendar year. Data for 2014 is not yet available; calculation is based on prior
year data.
55
2013-14 2012-13 2011-12 2010-11 2009-10
Secondary Assessed Value of Real
and Personal Property $ 904,776,443 $ 978,263,926 $ 1,040,412,117 $ 1,116,355,302 $ 1,100,568,483
Debt Limit, 15% of Secondary
Assessed Value 135,716,466 1 46,739,589 156,061,818 167,453,295 165,085,272
Amount of Debt Applicable to Debt Limit:
General Obligation Bonded Debt - - - - -
Total net debt applicable to the limit - - - - -
Legal debt margin $ 135,716,466 $ 146,739,589 $ 156,061,818 $ 167,453,295 $ 165,085,272
Total net debt as a percentage of
debt limit 0.00% 0.00% 0.00% 0.00% 0.00%
2008-09 2007-08 2006-07 2005-06 2004-05
Secondary Assessed Value of Real
and Personal Property $ 998,760,072 $ 851,317,372 $ 754,945,315 $ 702,260,107 $ 662,473,080
Debt Limit, 15% of Secondary
Assessed Value 149,814,011 1 27,697,606 113,241,797 105,339,016 99,370,962
Amount of Debt Applicable to Debt Limit:
General Obligation Bonded Debt - 1,605,000 3,165,000 4 ,680,000 6,155,000
Total net debt applicable to the limit - 1,605,000 3 ,165,000 4 ,680,000 6 ,155,000
Legal debt margin $ 149,814,011 $ 126,092,606 $ 110,076,797 $ 100,659,016 $ 93,215,962
Total net debt as a percentage of
debt limit 0.00% 1.26% 2.79% 4.44% 6.19%
Source:
Navajo County Assessor's Office and District records.
Notes:
Navajo County Community College District
(Northland Pioneer College)
Computation of Legal Debt Margin
Last Ten Fiscal Years
The Arizona Constitution, Article 9, Section 8, states that a county or school district may become indebted for an amount not to
exceed 15% of taxable property.
56
Principal Interest
2013-14 $ - $ - $ - $ - N/A
2012-13 - - - - N/A
2011-12 - - - - N/A
2010-11 - - - - N/A
2009-10 - - - - N/A
2008-09 1,656,313 1 ,605,000 56,175 1,661,175 1.00
2007-08 1,664,423 1 ,560,000 99,075 1,659,075 1.00
2006-07 1,675,224 1 ,515,000 140,737 1,655,737 1.01
2005-06 1,643,808 1 ,475,000 170,238 1,645,238 1.00
2004-05 $ 1,598,302 $ 1 ,445,000 $ 199,138 $ 1,644,138 .97
Principal Interest
2013-14 $ - $ - $ - $ - N/A
2012-13 - - - - N/A
2011-12 - - - - N/A
2010-11 - - - - N/A
2009-10 - - - - N/A
2008-09 2,824,047 2 35,000 7,696 242,696 11.64
2007-08 2,483,223 2 20,000 29,583 249,583 9.95
2006-07 2,361,668 2 10,000 43,022 253,022 9.33
2005-06 2,390,338 1 95,000 55,308 250,308 9.55
2004-05 $ 1,996,874 $ 1 80,000 $ 66,468 $ 246,468 8.10
Source:
District records.
Notes:
(1) Secondary Property Tax Revenues are based on a cash basis.
(2) Revenues include tuition, net of scholarship allowances.
Fiscal Year Revenues Certificates of Participation
(2)
Total Debt
Service
Coverage
Ratio
Navajo County Community College District
(Northland Pioneer College)
Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year Secondary
Property Tax (1)
Total Debt
Service
Coverage
Ratio
General Obligation
57
Calendar County County County County
Year Population Personal Personal Unemployment
Income Income Rate
(In Thousands) Per Capita
2013 1 07,322 Not available Not available 15.2%
2012 1 07,094 $ 2,826,523 2 6,393 15.2%
2011 1 07,174 2,780,847 2 5,947 15.8%
2010 1 07,449 2,742,716 2 5,526 16.0%
2009 1 12,975 2,634,137 2 3,316 14.9%
2008 1 12,348 2,539,509 2 2,604 9.7%
2007 1 10,999 2,412,656 2 1,736 6.3%
2006 1 09,000 2,260,966 2 0,743 7.2%
2005 1 06,968 2,120,553 1 9,824 8.0%
2004 1 05,020 $ 1,933,211 $ 1 8,408 8.4%
Sources:
2013 County unemployment rate from Arizona Department of Administration Office of
Employment and Population Statistics (azstats.gov).
Navajo County Community College District
(Northland Pioneer College)
Schedule of Demographic and Economic Statistics
Last Ten Years
Navajo County Finance Department, 2013 Comprehensive Annual Financial Report.
2013 County population estimate from U.S. Census Bureau.
58
Employment by Sector 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Mining and Construction 1,600 1,600 1,325 1,450 1,600 2,375 2,925 3,200 2,825 2,500
Educational & Health Svcs 3,575 3,550 3,200 3,550 3,500 3,300 3,325 3,250 3,100 2,950
Financial Activities 600 575 425 400 475 525 600 650 575 600
Government 9,675 9,850 9,500 9,650 10,100 10,400 9,925 9,875 9,850 10,125
Leisure & Hospitality 3,875 3,600 3,625 3,500 3,150 3,475 3,475 3,200 3,175 3,200
Manufacturing 125 475 525 525 550 800 900 975 900 900
Information 1,175 1,175 1,150 1,150 1,075 1,000 825 800 750 650
Professional & Business Svcs 1,175 1,000 1,025 1,000 1,025 1,275 1,350 1,250 1,100 1,100
Trade, Transportation & Utilities 5,175 5,150 5,025 5,250 5,375 5,650 6,050 5,700 5,600 5,550
Other Services 1,050 950 525 700 750 850 800 925 950 800
Sources:
Note:
Figures are organized under the North American Industrial Classification System (NAICS).
APS, Joseph City Electric Services
Arizona Department of Corrections Prison
Algae Biosciences Pharmaceuticals
Bashas', Taylor Retail
Burlington Northern Santa Fe Line-Haul
Cellular One Communications
Hatch Auto Centers Auto Dealer
Hondah Resort & Casino Hospitality
H

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Comprehensive Annual
Financial Report
Year Ended June 30, 2014
Navajo County Communi ty College Dist r ict, Holbrook, AZ
Navajo County Community College District
Holbrook, AZ
Comprehensive Annual Financial Report
Year Ended June 30, 2014
Prepared by the NPC District Financial Services Office
40th
Northland Pioneer College
Anniversary 1974-2014
Navajo County Community College District
(Northland Pioneer College)
Comprehensive Annual Financial Report
Year Ended June 30, 2014
Table of Contents Page
Introductory Section
1
2
8
9
President’s Letter
Transmittal Letter
Principal Officers
Organization Chart
Mission, Vision, Values 10
Financial Section
11
13
22-23
24
25
26
27-28
Independent Auditors’ Report
Management’s Discussion and Analysis
Statement of Net Position—Primary Government
Statement of Financial Position—Component Units
Statement of Revenues, Expenses, and Changes in Net Position—Primary Government
Statement of Activities—Component Units
Statement of Cash Flows—Primary Government
Notes to Financial Statements 29-42
43
Statistical Section
Statistical Section Introduction
Financial Trends:
Net Position by Component—Last Ten Fiscal Years 44
Changes in Net Position—Last Ten Fiscal Years 45
Expenses by Function—Last Ten Fiscal Years 46
Expenses by Use—Last Ten Fiscal Years 47
Revenues by Source—Last Ten Fiscal Years 48
Statutory Limit to Budgeted Expenditures—Last Ten Fiscal Years 49
Revenue Capacity:
Assessed Valuation, Tax Rate, and Estimated Actual Value—Last Ten Fiscal Years 50
Property Tax Levies and Collections—Last Ten Fiscal Years 51
Navajo County Community College District
(Northland Pioneer College)
Comprehensive Annual Financial Report
Year Ended June 30, 2014
Table of Contents Page
Property Tax Rates, Direct and Overlapping Governments—Last Ten Years (Per $100
of Assessed Value)
52
Principal Taxpayers—Current Year and Nine Years Ago 53
Historic General Resident Tuition—Last Ten Fiscal Years 54
Debt Capacity:
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years 55
Computation of Legal Debt Margin—Last Ten Fiscal Years 56
Debt Service Coverage—Last Ten Fiscal Years 57
Demographic and Economic Information:
Schedule of Demographic and Economic Statistics—Last Ten Years 58
Schedule of Employment by Sector and Major Employers—Last Ten Calendar Years 59
Operating Information:
Enrollment and Degree Statistics—Last Ten Years 60
Student Enrollment and Demographic Statistics—Last Ten Years 61-62
Employee Statistics (Headcount)—Last Ten Fiscal Years 63
Schedule of Capital Asset Information—Last Ten Fiscal Years 64
Introductory Section
November 14, 2014
Yá'át'ééh:
I use the greeting of our Native American neighbors to reflect the diversity of cultures served by the
Navajo County Community College District. You probably know us better as Northland Pioneer College,
or just NPC, and we have been transforming lives in Northeastern Arizona for the past 40 years by
providing a quality education, focused on community needs, utilizing a decentralized approach to
providing services.
NPC was, and continues to be, a pioneer in using technology to deliver higher education opportunities to
all Navajo County residents, whether in the long shadows of Monument Valley at Kayenta, the ancient
villages on the Hopi mesas, the railroad and ranching communities of Winslow and Holbrook, the rich
farm lands of Snowflake/Taylor, the tall pines of Show Low, or the deep canyons around Whiteriver. By
networking these seven educational facilities, plus two more in St. Johns and Springerville totally funded
by the citizens of Apache County, NPC provides the general education classes needed for a college
degree. Vocational training opportunities are concentrated in the county’s larger communities, with
housing scholarships offered to those students needing to temporarily re-locate to access this training.
Operating, maintaining and staffing seven scattered facilities, plus our technology infrastructure, does
present some financial challenges, especially when you consider only 18 percent of Navajo County’s
9,949 square miles are owned by corporations or private individuals subject to primary property taxes.
Support from the state of Arizona, in the form of equalization aid, helps reduce the impact but not
completely compensate for a nearly 65 percent reduction in state operating assistance.
Through conservative spending, and sound fiscal policies established by our District Governing Board,
NPC has reserved funds for future building and other major expenses. This “save, then build” approach
allowed the college to recently construct the $5 million Skills Center on the Holbrook campus without
seeking and paying interest on loans. A survey of community needs indicates a similar facility is needed
on the Show Low campus, as well as consolidation of allied health programs out of nearly 40-year-old
modular buildings.
How NPC utilizes, reports and internally manages public funds is the focus of this first Comprehensive
Annual Financial Report (CAFR), a transparent assurance of proper management of public funds to
concerned taxpayers and other interested parties. This report reflects our efforts to improve financial
reporting in every area, while continuing our mission to expand minds and transform lives of Navajo
County residents through higher education.
Sincerely,
Jeanne Swarthout, Ph.D.
President, Northland Pioneer College
1
November 14, 2014
To the Citizens and District Governing Board of the Navajo County Community College District:
We are pleased to provide you with the Comprehensive Annual Financial Report (CAFR) of the Navajo
County Community College District (also referred to as Northland Pioneer College, NPC, or the District),
for the fiscal year ended June 30, 2014.
Arizona Revised Statutes requires community college districts to prepare annual financial statements
and for those financial statements to be audited. The State of Arizona Office of the Auditor General
audited the District’s financial statements for the fiscal year ended June 30, 2014 and issued an
unmodified opinion, indicating they believe the financial statements were fairly presented. See
Independent Auditor’s Report at page 11.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation including all disclosures rests with the District’s management. To the best of our knowledge
and belief, the enclosed data are accurate in all material respects and are reported in a manner designed
to present fairly the financial position and results of operations of the District. All disclosures necessary
to enable the reader to gain an understanding of the District’s financial activities have been included.
Management is responsible for establishing and maintaining internal controls designed to ensure that
assets are protected from loss, theft, or misuse, and to ensure that adequate accounting data are
compiled to allow for the preparation of financial statements in conformity with generally accepted
accounting principles.
This CAFR is presented in three sections: Introductory, Financial and Statistical. The introductory section
includes the President’s welcome, this transmittal letter, the District’s principal officers, organization chart,
and mission, vision, and values statements. The financial section includes the Independent Auditor’s
Report, Management’s Discussion and Analysis (MD&A), the basic financial statements and the notes to
the financial statements. The MD&A provides a narrative overview and analysis of the basic financial
statements. This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. Finally, the statistical section includes selected unaudited financial and demographic
information, generally presented on a multi-year basis.
REPORTING ENTITY
The District is an independent reporting entity within the criteria established by Generally Accepted
Accounting Principles (GAAP) and the Governmental Accounting Standards Board (GASB). In
accordance with GASB Statement Nos. 14, 39 and 61, the financial reporting entity consists of a primary
government and two component units, NPC Friends and Family (formerly NPC Foundation) and
Northeast Arizona Training Center (NATC). The District is a primary government because it is a special-purpose
government that has a separately elected governing body, is legally separate, and is fiscally
independent of other state and local governments. The financial activity of NPC Friends and Family and
2
NATC are discretely presented as component units of the District. The District is not included in any other
governmental financial reporting entity.
INSTITUTIONAL PROFILE
The District is a comprehensive community college providing services in northeast Arizona. It offers
postsecondary degrees in over 63 occupational programs and specialty areas of study and offers lower
division general education courses that are transferrable to a university for a degree. It has one of the
lowest tuition rates in the state.
As a political subdivision of the State of Arizona, the District is subject to the oversight of its Governing
Board which is comprised of five elected members representing each of the five districts of Navajo
County. These members are elected for six-year terms on a staggered basis. The District’s Governing
Board is granted full authority by Arizona Revised Statutes to manage the business and educational
needs of the District. The administrative staff of the District, led by the President, is responsible for the
operation and administration of all District functions.
History and Service Area – Established in 1972, the District first enrolled students starting with
the fall semester of 1974. The District serves Navajo and Apache counties, an area of 21,158
square miles with a 2010 U.S. Census Bureau population of 178,967. The Navajo, Hopi, and
White Mountain Apache Indian Reservations occupy more than 66% of the total land in the
District’s service area and account for 60 percent of the area’s population.
Campuses are located within four of the largest Navajo County communities of Holbrook, Show
Low, Snowflake/Taylor and Winslow. Five centers are located in Polacca (Hopi), Kayenta, St.
Johns, Springerville/Eager and Whiteriver. Central District Offices are located on the Holbrook
Campus.
Accreditation – In order to have the right to award college degrees and certificates, institutions
of higher education must be evaluated by a nationally recognized accrediting agency. The Higher
Learning Commission (HLC) of the North Central Association of Colleges and Schools is charged
with evaluating the District. The District is proud to report having passed the most recent (2010)
evaluation with unqualified approval of every area of college operations. The HLC currently has
revised its 10-year evaluation schedule to one that continuously monitors excellence of
operational and educational standards. This new model ensures the District’s students of an up-to-
date, nationally recognized and accredited educational experience.
Accreditation Financial Ratios – On an annual basis the HLC requires member institutions to
provide financial information. The information is used to calculate a Composite Financial Index
(CFI) made up of four financial ratios, each one weighted differently. The CFI evaluates an
institution’s financial health; a CFI of 1.1 or higher indicates adequate financial health and requires
no HLC review. The District’s composite ratio for the years 2004 to 2013 has been greater than
2.0 and for the most recent six years have been greater than 7.0.
3
ECONOMIC OUTLOOK
Arizona continues to trail the nation in recovering from the 2007-2009 recession even after five years.
According the Bureau of Labor Statistics, Arizona’s unemployment rate for August 2014 was 7.1% while
the nation’s was 6.1%. In Navajo County, the unemployment rate is still in the double digits, at 15% or
greater since 2009. According to recent labor statistics, Arizona is second from the bottom in recovering
from jobs lost in the recession. The jobs lost were primarily in the construction industry, but state
economists expect those jobs to return when the state’s population increases. The population in Navajo
County has declined since 2009. The county’s loss of jobs, decrease in population, and funding available
for education are contributing factors in the decline in enrollment for the District. Student enrollment has
declined 32% since 2009. When comparing Fall 2013 to Fall 2012 the enrollment has declined 17%,
however, the national average for the decline in enrollment for the same period for 2-year public
institutions was 3%, according to the National Student Clearinghouse Research Center. Although these
statistics for Navajo County and the District seem bleak, the District is continuing to focus on how to
provide quality education programs while keeping costs low and finding creative solutions to help our
students achieve their goals. The major initiatives summarized below are a few ways in which the District
is helping to reduce the economic burden of our citizens.
MAJOR INITIATIVES
Scholarships and Tuition Waivers – In an effort to help provide economic relief to students
encountering obstacles in attending college due to limitations on Pell Grant availability,
decreasing family, community and tribal resources, and rising costs for basic services, the District
is offering four distinct tuition plans starting in Fall 2014. The Finish Line scholarship waives tuition
costs for up to 12 credits to assist students in completing their associate degree. The College
0
1
2
3
4
5
6
7
8
9
10
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Composite Financial Index
Northland Pioneer College
4
Bound scholarship allows qualified high school students to take up to seven general education
credits per semester tuition free. A tuition discount of 50 percent will be given to all Adult Basic
Education classes through The Learning Cornerstone and a tuition discount of 50 percent will be
given on all summer courses.
Capital Reserve Fund – The District has always followed conservative fiscal practices, especially
planning for the future and setting aside resources for those future needs. In March 2014, the
District Governing Board recognized the benefits of saving financial resources for future needs
and approved a new Future Capital Reserve Fund policy; on an annual basis it will identify a
specific dollar amount to be designated for future capital projects. The District follows a savings
approach instead of financing large projects. A recent example was the construction of the new
Skills Center located in Holbrook; funds for the $5 million facility were set aside over several years
to allow this building to become a reality. If the District had financed the project, the cost to
taxpayers could have increased by over $2 million. On February 18, 2014, the District dedicated
the new 26,600 square-foot facility that houses instructional areas for construction, welding,
mechatronics (automated manufacturing) and industrial maintenance and operations.
Student Success Initiative – The District is developing a comprehensive college-wide initiative
of redesigning the advisement program to increase student persistence and completion. The
student advisement cycle from first contact to completion will be evaluated. The restructuring will
focus on processes performed by full-time advisors, faculty and career advisors. It will include an
early alert process to identify and help at-risk students get back on track, expand the existing
orientation program, and implement more one-stop services for incoming students who need
registration, financial aid, and payment information. The District expects a multi-year design,
implementation, and programming investment to fully develop these integrated support
mechanisms for students.
FINANCIAL INFORMATION
Effective management of the District’s funds through internal controls, budgetary controls, cash
management and fiscal reporting comprises the District’s responsibilities for stewardship, safeguarding
of assets, and accountability of resource providers. Additional information relating to the District’s
financial management can be found in the statistical section at the back of this report.
Internal Control – The District is responsible for establishing and maintaining a system of internal
controls. Internal controls are designed to ensure reasonable, but not absolute assurance that
the assets of the District are protected from loss, theft or misuse and that the accounting records
used to prepare the financial statements are reliable and conform to generally accepted
accounting principles. The concept of reasonable assurance recognizes that the cost of a control
should not exceed the benefits likely to be derived from that control element, and that the
evaluation of costs and benefits requires estimates and judgments from management.
All internal control evaluations occur within the above framework. The District believes the internal
control structure adequately safeguards assets and provides reasonable assurance of proper
recording of financial transactions.
Budgetary Controls – The District engages in an annual financial planning cycle that begins with
the Strategic Plan. The Strategic Plan is a moving three year plan that is updated annually and
involves all levels of the organization – it identifies the strategic direction of the District and
establishes operating goals in support of its mission and vision. The District maintains budgetary
controls in the form of detailed balanced budgets and budget transfer restrictions by fund,
5
department and account. On a monthly basis the District presents various financial reports to the
District Governing Board including a report of revenues, expenditures and budgets by fund, a
report on property tax receipts, cash flow position, and a narrative discussing budget deviations
by fund. The objective of these budgetary controls is to ensure compliance with the annual budget
and to fulfill the requirements of the District Governing Board’s monitoring reports.
The District complies with Arizona Revised Statutes requiring that a report of the District’s adopted
budget be published annually based on the prescribed format established by the Office of the
Auditor General. The District also complies with Arizona Revised Statutes regarding Truth in
Taxation Notice and Hearing when the District’s primary property tax levy is greater than the
amount levied in the preceding year.
The District also demonstrates compliance by issuance of an annual budgeted expenditure
limitation report that is examined by the Office of the Auditor General. The expenditure limitation
calculation determines the maximum allowable expenditure supported by local revenues.
Cash Management – The District is governed by the Arizona Revised Statutes relating to overall
investment of idle public funds. The fiduciary responsibility for such investments is entrusted to
the District Governing Board and facilitated through the Vice President of Administrative Services.
The District invests idle funds in a prudent, conservative, and secure manner for the highest
available yield, given cash flow constraints, as prescribed by Arizona Revised Statutes. The
principal investment vehicles used during the fiscal year were the Navajo County Treasurer’s
investment pool and the Local Government Investment Pool (LGIP) managed by the Arizona
State Treasurer. Both have provided the District with safe liquid investments.
Financial Reporting – The District has an automated financial accounting system that captures
all financial transactions to prepare the audited financial statements, data for the CAFR, and to
develop internal management reports for decision-making needs and to aid in the allocation of
resources.
The CAFR for the District was formulated with data from several sources including District records
and the Navajo County Finance, Treasurer’s and Assessor’s Offices. These statements present
information on the financial condition of the District and whether resources were adequate to
cover the costs of providing services during the reporting period. The District’s CAFR is distributed
to the District Governing Board and administrators, the State legislature, Federal and State
agencies, and financial institutions as well as others throughout the general public.
INDEPENDENT AUDIT
The District is audited by Office of the Auditor General for the State of Arizona. The audit determines if
the financial statements are free of material misstatements and ensures compliance with the Arizona
Revised Statutes that require an annual audit of the District’s financial statements. The Independent
Auditor’s Report is included in the financial section of this CAFR. The District received an unmodified
opinion for the fiscal year ended June 30, 2014.
The District’s component units, NPC Friends and Family and NATC, are audited by local CPA firms. Both
component units received unmodified opinions for the fiscal year ended June 30, 2014.
GFOA CERTIFICATE OF ACHIEVEMENT
The fiscal year ended June 30, 2014 marks the end of forty year anniversary of the District. It is also the
first year it has compiled a comprehensive annual financial report for submission to the Government
6
Finance Officers Association (GFOA) in an effort to be awarded a Certificate of Achievement for financial
reporting. In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must also be in
compliance with generally accepted accounting principles and applicable legal requirements. The District
will submit this comprehensive annual financial report to the GFOA to determine its eligibility for the
achievement award.
ACKNOWLEDGEMENTS
We express our appreciation to all those who assisted in and contributed to the preparation of this report.
Our deepest gratitude goes to the dedicated staff in the Business Office. We would also express our
appreciation to the State of Arizona Office of the Auditor General and the Navajo County Finance,
Treasurer’s and Assessor’s Offices for their assistance with this report. Lastly, we thank the members of
the District Governing Board and the President for their guidance and support in maintaining the financial
stability of the District.
Respectfully submitted,
V. Blaine Hatch Maderia J. Ellison
Vice President for Administrative Services Director of Financial Services
7
PRINCIPAL OFFICERS
As of June 30, 2014
DISTRICT GOVERNING BOARD
Mr. Daniel Peaches, District 1
Mr. Prescott Winslow, District 2
Mr. Frank Lucero, District 3
Mr. James Matteson, District 4
Ms. Ginny Handorf, District 5
EXECUTIVE TEAM
Dr. Jeanne Swarthout, President
Mr. V. Blaine Hatch, Vice President for Administrative Services
Mr. Mark Vest, Vice President for Learning & Student Services
Mr. Eric Bishop, Director of Information Services
Dr. Leslie Wasson, Director of Institutional Effectiveness
8
ORGANIZATION CHART
9
OUR MISSION
Northland Pioneer College creates, supports and promotes lifelong learning.
OUR VISIONS
 NPC creates a learner-centered environment.
 NPC responds to community needs.
 NPC provides effective and responsive service to our constituencies.
 NPC fosters professional growth and collegial collaboration.
OUR VALUES
 We Value Learning
NPC is a community designed first and foremost to promote learning for our constituencies and for
ourselves.
 We Value Quality
NPC is strongly committed to improving learning opportunities by promoting high educational
standards.
 We Value Integrity
NPC is an organization that demands honesty and fairness in every relationship.
 We Value Diversity
NPC respects and promotes multi-culturalism in its students, academic programs and employment.
 We Value Service
NPC is a service organization dedicated to helping our students determine and achieve their goals.
 We Value Accountability
NPC adopts efficient operational practices to assure that our constituencies receive the highest
quality services for the lowest possible cost.
 We Value Responsiveness
NPC addresses community and students needs quickly.
 We Value Students and Colleagues
NPC respects and promotes the dignity, worth and capabilities of each individual.
 We Value Access
NPC is committed to providing accessible and affordable learning opportunities.
 We Value Collaboration
NPC can best serve its communities through cooperation and partnerships.
10
Financial Section
2910 NORTH 44th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051
Independent Auditors’ Report
Members of the Arizona State Legislature
The Governing Board of
Navajo County Community College District
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities and aggregate discretely
presented component units of the Navajo County Community College District as of and for the year ended
June 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of the aggregate discretely presented component units. Those statements were audited by
other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts
included for the aggregate discretely presented component units, is based solely on the reports of the other
auditors. We conducted our audit in accordance with U.S. generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement. The financial statements
of the aggregate discretely presented component units were not audited by the other auditors in accordance with
Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the District’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
11
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the business-type activities and
aggregate discretely presented component units of the Navajo County Community College District as of June 30,
2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with U.S. generally accepted accounting principles.
Other Matters
Required Supplementary Information
U.S. generally accepted accounting principles require that the Management’s Discussion and Analysis on pages
13 through 21 be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with U.S. generally accepted auditing standards, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The introductory and statistical sections listed in the table of
contents are presented for purposes of additional analysis and are not required parts of the basic financial
statements.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit
of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on
them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 14, 2014,
on our consideration of the District’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the District’s internal control over financial reporting and compliance.
Debbie Davenport
Auditor General
November 14, 2014
12
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Our discussion and analysis of the District’s financial performance provides an overview of the District’s
financial activities for the year ended June 30, 2014. Please read it in conjunction with the transmittal letter
which precedes this section and the District’s basic financial statements, which immediately follow.
Basic Financial Statements
The District’s annual financial statements are presented in accordance with U.S. generally accepted
accounting principles prescribed by the Governmental Accounting Standards Board (GASB), the
authoritative body for establishing Generally Accepted Accounting Principles (GAAP) for state and local
governments, including public institutions of higher education. These standards permit public colleges and
universities to use the guidance for special-purpose governments engaged in business-type activities. The
standards allow for the presentation of the District’s financial activity in a consolidated, single-column, entity-wide
format. This format is similar to the type of financial statements typical of a business enterprise or not-for-
profit organization. The basic financial statements consist of the following:
The Statement of Net Position reflects the financial position of the District at June 30, 2014. It shows the
various assets owned or controlled, related liabilities and other obligations, and the various categories of
net position. Net position is an accounting concept defined as total assets less total liabilities, and as
such, represent institutional equity or ownership in the District’s total assets.
The Statement of Revenues, Expenses, and Changes in Net Position reflects the results of operations
and other changes for the year ended June 30, 2014. It shows the various revenues and expenses, both
operating and nonoperating, reconciling the beginning net position amount to the ending net position
amount, which is shown on the Statement of Net Position described above.
The Statement of Cash Flows reflects the inflows and outflows of cash and cash equivalents for the year
ended June 30, 2014. It shows the various cash activities by type, reconciling the beginning cash and
cash equivalents amount to the ending cash and cash equivalents amount, which is shown on the
Statement of Net Position described above. In addition, this statement reconciles cash flows from
operating activities to operating loss on the Statement of Revenues, Expenses, and Changes in Net
Position described above.
Financial Highlights and Analysis
Consistent with its mission, the District creates, supports and promotes lifelong learning. Major funding
sources supporting all functions include property taxes, state appropriations, government grants and
contracts, and tuition and fees. The District may exercise primary and secondary property tax levy
authority for generation of funds used for operating, capital equipment, and debt retirement purposes.
The condensed financial information below highlights the main categories of the Statement of Net
Position. Assets are distinguished as either current or noncurrent. Current assets are resources available
to meet the District’s operating needs. Other liabilities are made up of accounts payable, unearned
revenues, and accrued payroll and employee benefits. Net position is divided into three categories
reflecting the broad characteristics of institutional equity in the assets of the District. In addition to the
District’s capital assets, the District holds resources that external parties have restricted for specific
13
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
programs or purposes. The remaining net position is unrestricted but is dedicated to the District’s primary
mission. Over time, increases or decreases in net position may serve as a useful indicator of whether the
District’s financial position is improving or deteriorating.
Condensed Financial Information
The following is a listing of condensed financial information for the District as of June 30, 2014 and
June 30, 2013:
Condensed Statement of Net Position—Primary Government
As of June 30
2014
2013
% Change
Assets:
Current assets $42,574,324 $39,408,725 8%
Noncurrent assets, other than
capital assets
674,244
799,138
-16%
Capital assets, net 39,289,567 38,701,227 2%
Total assets 82,538,135 78,909,090 5%
Liabilities:
Other liabilities 1,776,551 1,757,716 1%
Long-term liabilities 462,826 450,164 3%
Total liabilities 2,239,377 2,207,880 1%
Net Position:
Net investment in capital assets 39,231,822 38,626,891 2%
Restricted 612,712 691,628 -11%
Unrestricted 40,454,224 37,382,691 8%
Total net position $80,298,758 $76,701,210 5%
Total assets increased $3.6 million, or 5 percent, driven by current assets which increased $3.2 million.
Cash and investments held with the County Treasurer and the Arizona State Treasurer increased due to
cost containment of $2.0 million in the General Fund and $1.5 million of unspent contingency funds
established in the budget to address unforeseen risks. The available funds will be used to help with future
capital projects included in the Master Facilities Plan.
Total net position increased by $3.6 million, or 5 percent, related to an increase of $3.0 million in
unrestricted net position and of $0.6 million in net investment in capital assets. The District has committed
to using unrestricted net position to support capital needs over the next several years, dedicating $25.0
million for fiscal years 2014, 2015, and 2016. While the District plans to use portions of its unrestricted
net position to continue to provide consistent quality of services to students and communities, regular
evaluation of financial resources is needed as the local and state economy continues to recover from the
recession.
14
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
The condensed financial information below highlights the main categories of the Statement of Revenues,
Expenses, and Changes in Net Position. Generally, revenues generated by the District from exchange
transactions are considered operating revenues. Other revenues such as state appropriations, property
taxes, and certain government grants are considered nonoperating revenues. In compliance with U.S.
generally accepted accounting principles, scholarships applied to tuition and fees are recorded as an
offset to operating revenues instead of being reported as an expense to the District.
Depreciation expense is recorded in accordance with the adoption of the economic resources
measurement focus. The construction and acquisition of capital assets, although budgeted and tracked
as expenditures in the accounting system, are not reflected as expenses in these statements. Such
transactions are instead capitalized and reported as assets, with the systematic depreciation of the costs
expensed over the useful lives of the assets constructed or acquired.
The District shows an operating loss because the three largest revenue sources, property taxes, state
appropriations, and government grants, are considered nonoperating revenues. Please refer to the
Summary of Significant Accounting Policies (Note 1), which directly follows the presentation of the basic
financial statements, for a description of the differences between operating and nonoperating revenues.
15
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Condensed Statement of Revenues, Expenses, and
Changes in Net Position—Primary Government
Year Ended June 30
2014
2013
% Change
Revenues:
Operating
Tuition and fees, net $ 2,295,137 $ 2,466,640 -7%
Government contracts 3,156,936 2,969,273 6%
Bookstore income, net 66,720 42,460 57%
Other 352,295 379,831 -7%
Total operating revenues 5,871,088 5,858,204 0%
Nonoperating
Property taxes 13,153,327 13,180,294 0%
State appropriations 7,160,800 7,059,800 1%
Government grants 4,740,596 5,018,111 -6%
Private grants 304,219 325,919 -7%
Share of state sales taxes 435,192 545,682 -20%
Investment earnings 148,526 170,717 -13%
Gain (loss) on disposal of capital
assets
(112,752)
18,627
-705%
Total nonoperating revenues 25,829,908 26,319,150 -2%
Other revenues
Capital appropriations 122,600 - -
Total revenues 31,823,596 32,177,354 -1%
Expenses:
Operating $28,220,910 $27,631,411 2%
Nonoperating 5,138 - -
Total expenses 28,226,048 27,631,411 2%
Increase in net position 3,597,548 4,545,943 -21%
Total net position, July 1 76,701,210 72,155,267 6%
Total net position, June 30 $80,298,758 $76,701,210 5%
16
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Total operating revenues remained relatively flat. Increases in government contracts were offset by a decline
in tuition and fees revenue. Government contracts increased $188,000, or 6 percent, as a result of a
$305,000 increase in State of Arizona reimbursement for Apache County students attending classes in
Navajo County, while Northern Arizona Vocational Institute of Technology revenue decreased $138,000
related to a decline in enrollment. Tuition and fees decreased by $172,000, or 7 percent, related to declining
enrollment and an increase in scholarship allowances which reduced net tuition and fees.
Nonoperating revenues decreased $489,000, or 2 percent. Government grants decreased $278,000, or
6 percent, driven primarily by a decrease in the Federal Pell Program related to declining student
enrollment and constraints of new eligibility requirements for students. The $110,000, or 20 percent,
decrease in the share of state sales taxes results from a change in the timing of the recognition of this
income in the prior fiscal year. That change resulted in reporting income for a 14-month period in the prior
fiscal year compared with a 12-month period in the current year. State appropriations, which include
operating state aid and equalization aid, increased $101,000, or 1 percent, compared to the prior year.
The increase is a result of increased equalization funding of $144,000.
Other revenues increased $123,000 due to a capital appropriation which was approved for fiscal year
2014. This is the first capital funding provided to the District since fiscal year 2008.
17
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
2014 2013 % Change
Operating Expenses
Educational and general:
Instruction $ 9,761,727 $ 9,660,102 1%
Public service 35,889 29,387 22%
Academic support 1,046,927 1,047,037 0%
Student services 2,143,989 2,151,538 0%
Institutional support 8,475,611 8,308,926 2%
Operation and maintenance of plant 2,118,547 1,867,890 13%
Scholarships 2,240,669 2,570,647 -13%
Auxiliary enterprises 559,067 451,470 24%
Depreciation 1,838,484 1,544,414 19%
Total operating expenses 28,220,910 27,631,411 2%
Nonoperating Expenses
Interest expense 5,138 - -
Total nonoperating expense 5,138 - -
Total expenses $28,226,048 $27,631,411 2%
Operating expenses increased $589,000, or 2 percent. The District continues to focus on maintaining
comprehensive and quality services to the students and communities in its service area, as a result
instruction expenses increased $102,000, or 1 percent. The District also continues to focus on repairs
and maintenance of the existing plant and equipment and as a result Operation and Maintenance of Plant
increased $251,000, or 13 percent. Scholarships decreased $330,000, or 13 percent, driven primarily by
a decrease in federal financial aid awards, specifically the Federal Pell Program, which was connected
to declining student enrollment.
Instruction
35%
Public
service
<1%
Academic
support
Student 4%
services
8%
Institutional
support
30%
Operation and
maintenance of
plant
7%
Scholarships
8%
Auxiliary
enterprises
2%
Depreciation
6%
2014 Operating Expenses by Category
18
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
Capital Assets and Debt Administration
Capital assets are defined as those items costing over $5,000 and that have an estimated useful life of
more than 1 year.
Beginning in fiscal year 2011, the District developed a rolling 3-year plan to manage capital needs. The
District has set aside a portion of its unrestricted net position to address future needs. It has focused on
maintenance of facilities that had been deferred for several years and has pursued capital acquisitions
and new construction to meet the demands of its students and the communities it serves.
 In fiscal year 2013, the District started construction of the 26,600 square-foot Skills Center located on
the Painted Desert Campus in Holbrook and spent $3.6 million. An additional $1.7 million was
required to complete the building in fiscal year 2014. Construction was completed in December 2013
and classes in the building began in January 2014.
 In fiscal year 2014, the District began renewal projects to enhance and extend the useful life of the
facilities. The projects included work at all four campuses, the Painted Desert Campus in Holbrook,
the White Mountain Campus in Show Low, the Silver Creek Campus in Snowflake/Taylor, the Little
Colorado Campus in Winslow, and one center, the Whiteriver Center in Whiteriver.
Over the next 3 years, the District plans to spend $25.0 million on major capital acquisitions and new
construction while continuing to address deferred maintenance. The construction of new facilities at the
White Mountain Campus in Show Low is planned, but specific details have not been finalized.
Additional information on the District’s capital assets can be found in Note 3 and additional information
on the District’s construction in progress can be found in Note 4 to the basic financial statements.
The District currently has no long-term debt other than compensated absences and capital leases and
does not anticipate acquiring new debt.
Current Factors Having Probable Future Financial Significance
The District has four primary revenues sources: property taxes, state appropriations, government grants
and contracts, and tuition and fees.
The District historically set the property tax levy at the maximum rate allowed by statute. The District did
not set the property tax levy at the maximum rate allowed for fiscal year 2014 due to concerns over the
impact to taxpayers, but it did set the levy at the maximum for fiscal year 2015. Taxpayer opposition to
property taxes is growing due to continuing challenges related to the weak local economy.
 During fiscal year 2013 the recycle paper mill in Snowflake was permanently closed resulting in the
loss of approximately 1,300 jobs directly and indirectly related to the operations of the facility. The
closure of the paper mill continues to have a negative impact on the property values and the related
property taxes. The assessed value of the papermill property decreased by over 30%.
19
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
 During fiscal year 2014 Transwestern Pipeline brought a lawsuit disputing the assessed valuation of
its property in Arizona. The settlement of the dispute resulted in a property tax refund to the company.
The District’s share of the refund was $120,000. Due to the success of this lawsuit other companies
may dispute the assessed valuation of property in Arizona which, in turn, could require additional
refunds from the District.
The District will continue to closely monitor the impacts these and other factors may have on future
property tax revenues.
State appropriations used to support the District’s operations increased by 1 percent for fiscal year 2014
from fiscal year 2013. The District received equalization aid of $5.5 million in fiscal year 2014, which was
an increase of 3 percent from the prior year. Capital appropriation funding was approved for fiscal year
2014 in the amount of $123,000. This is the first capital funding provided to the District since fiscal year
2008. Total state funding has been on the decline for several years with no expectation of increase.
Performance-based funding continues to be discussed at a variety of governance levels but no future
plans have been finalized. The impact to the District is unknown, but the potential for an increase in state
appropriations to the District is low.
Each year the District completes the Annual Budget Expenditure Limitation Report (ABELR) which
compares budgeted expenditures of public funds to a constitutional limit. The expenditure limit is
calculated using base amount expenditures from fiscal year 1980, annual inflation, and enrollment.
Historically the District’s expenditures have been below the calculated limit. Recently the calculated
impact of inflation combined with the reductions in enrollment are not allowing the District to keep pace
with the actual growth in expenses. As this trend continues the District’s expenditures will likely exceed
the constitutional expenditure limit. The District has accumulated unspent revenues which will be used to
offset excess expenditures in the near-term. The long-term solution is to seek revisions to the expenditure
limit legislation.
Recently adopted GASB regulations will require the District to adopt a new reporting method for its
proportionate share of the underfunded Arizona State Retirement System (ASRS) beginning in fiscal year
2015. Under this new guidance the District will report a liability on its financial statements that is
equivalent to its proportionate share of the net pension liability of all the employers who participate in the
ASRS cost-sharing plan. This new reporting requirement is expected to have a significant effect on the
District’s financial statements, however, the District will not be able to determine its proportionate share
until ASRS discloses the total underfunded amount.
Funding from external sources, including federal and local grants and contracts along with community
and business partnerships, is important to the District. The District continuously pursues additional grant
and partnership opportunities.
The District continuously evaluates its tuition and fee structure. The District is limited in the amount of
increases it can implement based on the demographics of its service area. The District’s service area
covers approximately 21,158 square miles and is comprised of one of the poorest, most remote, and
least populated areas in both Arizona and the United States. In-state tuition increased 3 percent, up $2
from $62 to $64 per credit hour in fiscal year 2014. For fiscal year 2015 tuition was increased an additional
20
Navajo County Community College District
(Northland Pioneer College)
Management’s Discussion and Analysis
Year Ended June 30, 2014
3 percent to $66 and it is the intention of the District to limit tuition increases to $2 per year for the
upcoming two years. Establishing tuition rates in advance will aid our students in their financial planning
for the completion of their course work at the District. The District continues to offer one of the lowest
tuition rates in the State.
Requests for Information
This discussion and analysis is designed to provide a general overview of the Navajo County Community
College District’s finances for all those with an interest in such matters. Questions concerning any of the
information provided in the basic financial statements or requests for additional information should be
addressed to Administrative Services, Northland Pioneer College, PO Box 610, Holbrook, AZ 86025.
Separately issued financial statements are issued for Northland Pioneer College Foundation and
Northeast Arizona Training Center, Inc., discretely presented component units of Navajo County
Community College District. Complete financial statements for both component units can be obtained
from Northland Pioneer College, PO Box 610, Holbrook, AZ 86025.
21
Navajo County Community College District
(Northland Pioneer College)
Statement of Net Position—Primary Government
June 30, 2014
Business-Type
Activities
Assets
Current assets:
Cash and investments $ 40,346,816
Receivables (net of allowances for uncollectibles):
Accounts 803,897
Property taxes 452,161
Student 678,288
Inventories 64,935
Prepaid items 228,227
Total current assets 42,574,324
Noncurrent assets:
Restricted assets:
Cash and investments 612,712
Property taxes receivable (net of allowances of $100,000) 4,014
Student receivable (net of allowances of $1,189,833) 57,518
Capital assets, not being depreciated 835,061
Capital assets, being depreciated, net 38,454,506
Total noncurrent assets 39,963,811
Total assets 82,538,135
Liabilities
Current liabilities:
Accounts payable 687,821
Accrued payroll and employee benefits 273,767
Unearned revenues 814,963
Current portion of compensated absences payable 303,811
Current portion of capital lease payable 17,854
Total current liabilities 2,098,216
Noncurrent liabilities:
Compensated absences payable 101,270
Capital lease payable 39,891
Total noncurrent liabilities 141,161
Total liabilities 2,239,377
(Continued)
See accompanying notes to financial statements.
22
Navajo County Community College District
(Northland Pioneer College)
Statement of Net Position—Primary Government
June 30, 2014
(Concluded)
Business-Type
Activities
Net Position
Net investment in capital assets $ 39,231,822
Restricted:
Nonexpendable—endowments 12,414
Expendable:
Scholarships, grants, and contracts 238,429
Capital projects 361,869
Unrestricted 40,454,224
Total net position $ 80,298,758
See accompanying notes to financial statements.
23
Navajo County Community College District
(Northland Pioneer College)
Statement of Financial Position—Component Units
June 30, 2014
Northeast
Northland Pioneer Arizona Training
College Foundation Center, Inc. Total
Assets
Cash and cash equivalents $ 33,788 $ 66,719 $ 100,507
Restricted cash—savings 3,170 3,170
Investments:
Marketable securities—restricted 127,497 127,497
Real estate 8,000 8,000
Prepaid expense 8,524 3 ,742 12,266
Property and equipment, net of
accumulated depreciation 32,981 1,860,461 1,893,442
Total assets $ 213,960 $ 1,930,922 $ 2,144,882
Liabilities
Accounts payable $ 671 $ 671
Other current liabilities $ 5 00 500
Long-term obligations due within 1 year 25,000 25,000
Total liabilities 671 25,500 26,171
Long-term debt 320,000 320,000
Total liabilities 671 345,500 346,171
Net Assets
Unrestricted 82,622 1,585,422 1,668,044
Temporarily restricted 64,542 64,542
Permanently restricted 66,125 66,125
Total net assets 213,289 1,585,422 1,798,711
Total liabilities and net assets $ 213,960 $ 1,930,922 $ 2,144,882
See accompanying notes to financial statements.
24
Navajo County Community College District
(Northland Pioneer College)
Statement of Revenues, Expenses, and
Changes in Net Position—Primary Government
Year Ended June 30, 2014
Business-Type
Activities
Operating revenues:
Tuition and fees, net of scholarship allowances of $2,624,037 $ 2,295,137
Government contracts 3,156,936
Bookstore income, net of scholarship allowances of $23,188 66,720
Other sales and services 95,157
Other 257,138
Total operating revenues 5,871,088
Operating expenses:
Educational and general:
Instruction 9,761,727
Public service 35,889
Academic support 1,046,927
Student services 2,143,989
Institutional support 8,475,611
Operation and maintenance of plant 2,118,547
Scholarships 2,240,669
Auxiliary enterprises 559,067
Depreciation 1,838,484
Total operating expenses 28,220,910
Operating loss (22,349,822)
Nonoperating revenues and expenses:
Property taxes 13,153,327
State appropriations 7,160,800
Government grants 4,740,596
Private grants 304,219
Share of state sales taxes 435,192
Investment earnings 148,526
Interest expense on debt (5,138)
Loss on disposal of capital assets (112,752)
Total nonoperating revenues and expenses 25,824,700
Income before other revenues, expenses, gains, or losses 3,474,948
Capital appropriations 122,600
Increase in net position 3,597,548
Total net position, July 1, 2013 76,701,210
Total net position, June 30, 2014 $ 80,298,758
See accompanying notes to financial statements.
25
Navajo County Community College District
(Northland Pioneer College)
Statement of Activities—Component Units
Year Ended June 30, 2014
Northland Northeast
Pioneer College Arizona Training
Foundation Center, Inc. Total
Changes in Unrestricted Net Assets
Unrestricted support $ 6,526 $ 10,445 $ 16,971
Memberships and usage fees 25,500 25,500
Interest income 15 37 52
Rental income 32,955 26,000 58,955
Total unrestricted support 39,496 61,982 101,478
Net assets released from restrictions 9,509 - 9,509
Total unrestricted revenues and support 49,005 61,982 110,987
Expenses:
Program services 32,163 124,487 156,650
Support services 20,501 20,622 41,123
Interest expense 17,225 17,225
Total expenses 52,664 162,334 214,998
Decrease in unrestricted net assets (3,659) (100,352) (104,011)
Changes in Temporarily Restricted Net Assets
Contributions 3,459 3,459
Interest income 2,609 2,609
Realized gain on investments 15,702 15,702
Unrealized loss on investments (2,003) (2,003)
Net assets released from restrictions (9,509) (9,509)
Investment fees (826) (826)
Increase in temporarily restricted net assets 9,432 9,432
Changes in Permanently Restricted Net Assets
Interest income 27 27
Realized gain on investments 163 163
Unrealized loss on investments (20) (20)
Investment fees (9) (9)
Decrease in permanently restricted net assets 161 161
Increase (decrease) in net assets 5,934 (100,352) (94,418)
Net assets, beginning of year 207,355 1,685,774 1,893,129
Net assets, end of year $ 213,289 $ 1,585,422 $ 1,798,711
See accompanying notes to financial statements.
26
Navajo County Community College District
(Northland Pioneer College)
Statement of Cash Flows—Primary Government
Year Ended June 30, 2014
Business-Type
Activities
Cash flows from operating activities:
Tuition and fees $ 2,563,686
Government contracts 3,889,513
Bookstore receipts 66,720
Other receipts 352,295
Payments to suppliers and providers of goods and services (6,816,749)
Payments for employee wages and benefits (17,209,940)
Payments to students for scholarships and loans (2,240,669)
Net cash used for operating activities (19,395,144)
Cash flows from noncapital financing activities:
Property taxes 13,249,046
State appropriations 7,160,800
Government grants 5,091,448
Private grants 304,219
Share of state sales taxes 396,536
Net cash provided by noncapital financing activities 26,202,049
Cash flows from capital and related financing activities:
Capital appropriations 122,600
Proceeds from sale of capital assets 198
Purchase and construction of capital assets (2,539,774)
Principal paid on capital lease (16,591)
Interest paid on capital lease (5,138)
Net cash used for capital and related financing activities (2,438,705)
Cash flows from investing activities:
Interest received on investments 148,526
Net cash provided by investing activities 148,526
Net increase in cash and cash equivalents 4,516,726
Cash and cash equivalents, July 1, 2013 36,442,802
Cash and cash equivalents, June 30, 2014 $ 4 0,959,528
(Continued)
See accompanying notes to financial statements.
27
Navajo County Community College District
(Northland Pioneer College)
Statement of Cash Flows—Primary Government
Year Ended June 30, 2014
(Concluded)
Business-Type
Activities
Reconciliation of operating loss to net cash
used for operating activities:
Operating loss $ (22,349,822)
Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation 1,838,484
Changes in assets and liabilities:
Increase in:
Inventories (17,225)
Unearned revenues 143,741
Compensated absences payable 29,253
Decrease in:
Accounts receivable 732,577
Student receivable 124,808
Prepaid items 227,946
Accounts payable (86,220)
Accrued payroll and employee benefits (38,686)
Net cash used for operating activities $ (19,395,144)
Reconciliation of cash and cash equivalents,
as presented on the Statement of Net Position:
Cash and investments $ 4 0,346,816
Restricted assets:
Cash and investments 612,712
Total cash and cash equivalents, June 30, 2014 $ 4 0,959,528
See accompanying notes to financial statements.
28
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 1 - Summary of Significant Accounting Policies
Navajo County Community College District’s accounting policies conform to generally
accepted accounting principles applicable to public institutions engaged only in business-type
activities adopted by the Governmental Accounting Standards Board (GASB).
A. Reporting Entity
The District is a special-purpose government that is governed by a separately elected
governing body. It is legally separate and fiscally independent of other state and local
governments. The accompanying financial statements present the activities of the District (the
primary government) and its discretely presented component units, the Northland Pioneer
College Foundation (Foundation), and the Northeast Arizona Training Center, Inc. (NATC).
The Foundation is a legally separate, tax-exempt organization. It acts primarily as a fund-raising
organization that receives gifts and bequests, administers those resources, and
disburses payments to or on behalf of the District for scholarships and other educational
purposes. Although the District does not control the timing or amount of the receipts from the
Foundation, the Foundation’s restricted resources can be used only by or for the benefit of
the District or its constituents. Consequently, the Foundation is considered a component unit
of the District and is discretely presented in the District’s financial statements.
For financial reporting purposes, the Foundation follows the Financial Accounting Standards
Board (FASB) statements for not-for-profit organizations. As such, certain revenue
recognition criteria and presentation features are different from GASB revenue recognition
criteria and presentation features. No modifications have been made to the Foundation’s
financial information included in the District’s financial report. Accordingly, those financial
statements have been reported on separate pages following the District’s respective
counterpart financial statements. For financial reporting purposes, only the Foundation’s
statements of financial position and activities are included in the District’s financial
statements as required by generally accepted accounting principles for public colleges and
universities. The Foundation has a June 30 year-end.
During the year ended June 30, 2014, the Foundation distributed $12,359 to the District for
both restricted and unrestricted purposes. Complete financial statements of the Foundation
can be obtained from the Northland Pioneer College Foundation, P.O. Box 610, Holbrook,
AZ 86025-0610.
NATC is a legally separate, tax-exempt organization. It acts primarily as a certified regional
training center to meet the educational and testing needs of fire and law enforcement
professionals in Northeast Arizona. The enabling legislation for NATC calls for the District to
exercise operating control over NATC. Therefore, the voting members of NATC’s Board of
Directors are employees of the District and the District is able to significantly influence the
programs, activities or level of services provided by NATC. Consequently, NATC is considered
a component unit of the District and is discretely presented in the District’s financial statements.
29
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
For financial reporting purposes, NATC follows the Financial Accounting Standards Board
(FASB) Accounting Standards Codification (ASC) 958. As such, certain revenue recognition
criteria and presentation features are different from GASB revenue recognition criteria and
presentation features. No modifications have been made to NATC’s financial information
included in the District’s financial report. Accordingly, those financial statements have been
reported on separate pages following the District’s respective counterpart financial
statements. For financial reporting purposes, only NATC’s statements of financial position
and activities are included in the District’s financial statements as required by generally
accepted accounting principles for public colleges and universities. NATC has a June 30
year-end.
Complete financial statements of NATC can be obtained from the Northeast Arizona Training
Center, P.O. Box 610, Holbrook, AZ 86025-0610.
B. Basis of Presentation and Accounting
The basic financial statements include a statement of net position; a statement of revenues,
expenses, and changes in net position; and a statement of cash flows.
A statement of net position provides information about the District’s assets, deferred outflows
of resources, liabilities, deferred inflows of resources, and net position at the end of the year.
Assets and liabilities are classified as either current or noncurrent. Net position is classified
according to external donor restrictions or availability of assets to satisfy the District’s
obligations. Net investment in capital assets represents the value of capital assets, net of
accumulated depreciation, less any outstanding debt incurred to acquire or construct the
assets. Nonexpendable restricted net position includes gifts that have been received for
endowment purposes, the corpus of which cannot be expended. Expendable restricted net
position represents grants, contracts, gifts, and other resources that have been externally
restricted for specific purposes. Unrestricted net position consists of all other resources,
including those that have been designated by management to be used for other than general
operating purposes.
A statement of revenues, expenses, and changes in net position provides information about
the District’s financial activities during the year. Revenues and expenses are classified as
either operating or nonoperating, and all changes in net position are reported, including
capital contributions and additions to endowments. Operating revenues and expenses
generally result from exchange transactions. Accordingly, revenues such as tuition and
bookstore charges, in which each party receives and gives up essentially equal values, are
considered operating revenues. Other revenues, such as property taxes, state appropriations
and government grants, result from transactions in which the parties do not exchange equal
values and are considered nonoperating revenues. Operating expenses include the cost of
sales and services, administrative expenses, and depreciation on capital assets. Other
expenses, such as interest expense, are considered to be nonoperating expenses.
30
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
A statement of cash flows provides information about the District’s sources and uses of cash
and cash equivalents during the year. Increases and decreases in cash and cash equivalents
are classified as either operating, noncapital financing, capital financing, or investing.
The financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned, and expenses are
recorded at the time liabilities are incurred, regardless of when the related cash flows take
place. Property taxes are recognized as revenues in the year for which they are levied. State
appropriations are recognized as revenue in the year in which the appropriation is first made
available for use. Grants and donations are recognized as revenue as soon as all eligibility
requirements the provider imposed have been met. The District eliminates all internal activity.
The District’s policy is to first apply restricted resources when an expense is incurred for
purposes for which both restricted and unrestricted net position is available.
C. Cash and Investments
For the statement of cash flows, the District’s cash and cash equivalents are considered to
be cash on hand, demand deposits, cash and investments held by the County Treasurer,
investments in the State Treasurer’s Local Government Investment Pool, and highly liquid
investments. All investments are stated at fair value.
D. Inventories
Inventories are stated at the lower of cost (first-in, first-out method) or market.
E. Capital Assets
Capital assets are reported at actual cost, or estimated historical cost if historical records are
not available. Donated assets are reported at estimated fair value at the time received.
Capitalization thresholds (the dollar values above which asset acquisitions are added to the
capital asset accounts), depreciation methods, and estimated useful lives of capital assets
reported in the financial statements are as follows:
Capitalization
Threshold
Depreciation
Method
Estimated
Useful Life
Land $5,000 Not applicable Not applicable
Buildings 5,000 Straight-line 10 – 40 years
Improvements other than buildings 5,000 Straight-line 20 – 40 years
Equipment 5,000 Straight-line 5 – 10 years
Library books All Straight-line 10 years
31
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
F. Investment Earnings
Investment earnings is composed of interest, dividends, and net changes in the fair value of
applicable investments.
G. Compensated Absences
Compensated absences payable consists of vacation leave employees earned based on
services already rendered.
Employees may accumulate up to 224 hours of vacation depending on years of service, but
they forfeit any unused vacation hours in excess of the maximum amount at the end of August
each year. Upon terminating employment, the District pays all unused and unforfeited
vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in
the financial statements.
Employees may accumulate up to 1040 hours of sick leave. Generally, sick leave benefits
provide for ordinary sick pay and are cumulative but employees forfeit them upon terminating
employment. Because sick leave benefits do not vest with employees a liability for sick leave
benefits is not accrued in the financial statements.
H. Scholarship Allowances
A scholarship allowance is the difference between the stated charge for goods and services
the District provides and the amount that the student or third parties making payments on the
student’s behalf pay. Accordingly, some types of student financial aid, such as Pell grants
and scholarships the District awards, are considered scholarship allowances. These
allowances are netted against tuition and fees revenues, and bookstore income in the
statement of revenues, expenses, and changes in net position.
Note 2 - Deposits and Investments
Arizona Revised Statutes (A.R.S.) requires the District to deposit special tax levies for the
District’s maintenance or capital outlay with the County Treasurer. The statutes do not require
the District to deposit other public monies in its custody with the County Treasurer; however,
the District must act as a prudent person dealing with another’s property when making
investment decisions about those monies. The statutes do not include any requirements for
credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign
currency risk for the District’s investments.
Deposits—At June 30, 2014, the carrying amount of the District’s deposits was $1,335,715,
and the bank balance was $2,021,908. The District does not have a policy for custodial credit
risk.
32
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Investments—The District’s investments at June 30, 2014, were as follows:
Investment Type Amount
State Treasurer’s investment pool 5 $18,214,185
County Treasurer’s investment pool 21,404,118
Total $39,618,303
The State Board of Investment provides oversight for the State Treasurer’s pools. The fair
value of a participant’s position in the pool approximates the value of that participant’s pool
shares, and the participant’s shares are not identified with specific investments. No
comparable oversight is provided for the County Treasurer’s investment pool, and that pool’s
structure does not provide for shares.
Credit risk—The District does not have a formal policy for credit risk. At June 30, 2014, credit
risk for the District’s investments was as follow:
Investment Type Rating Rating Agency Amount
State Treasurer’s investment pool 5 AAAf/S1+ Standard and Poor’s $18,214,185
County Treasurer’s investment pool Unrated Not applicable 21,404,118
Total $39,618,303
Custodial Credit Risk—For an investment, custodial credit risk is the risk that, in the event of
the counterparty’s failure, the District will not be able to recover the value of its investments
or collateral securities that are in an outside party’s possession. The District does not have
a formal investment policy for custodial credit risk.
Concentration of Credit Risk—The District does not have a formal policy for concentration of
credit risk.
Interest Rate Risk—The District does not have a formal policy for interest rate risk. At
June 30, 2014, the District had the following investments in debt securities:
Investment Type
Amount
Weighted Average
Maturity
State Treasurer’s investment pool 5 $18,214,185 1.4 months
County Treasurer’s investment pool 21,404,118 39.6 months
Total $39,618,303
A reconciliation of cash, deposits, and investments to amounts shown on the Statement of
Net Position follows:
Cash, deposits, and investments: Statement of Net Position:
Cash on hand $ 5,510 Cash and investments $40,346,816
Amount of deposits 1,335,715 Restricted assets:
Amount of investments 39,618,303 Cash and investments 612,712
Total $40,959,528 Total $40,959,528
33
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 3 - Capital Assets
Capital asset activity for the year ended June 30, 2014, was as follows:
Balance
July 1, 2013 Increases Adjustments
Decreases
Balance
June 30, 2014
Capital assets not being depreciated:
Land $ 709,291 $ 709,291
Construction in progress 3,672,615 $1,832,137 $5,378,982 125,770
Total capital assets not being
depreciated
4,381,906
1,832,137
5,378,982
835,061
Capital assets being depreciated:
Buildings 34,023,853 5,362,511 $ 7,900 $39,394,264
Equipment 6,140,279 648,351 (7,900) 63,148 6,717,582
Improvements other than buildings 9,565,352 16,471 9,581,823
Library books 599,889 59,286 50,667 608,508
Total capital assets being
depreciated
50,329,373
6,086,619
-
113,815
56,302,177
Less accumulated depreciation for:
Buildings $ 9,910,815 $ 864,750 $10,775,565
Equipment 3,308,969 618,243 $ 87,353 $ 37,551 3,977,014
Improvements other than buildings 2,451,610 306,168 2,757,778
Library books 338,658 49,323 50,667 337,314
Total accumulated depreciation 16,010,052 1,838,484 87,353 88,218 17,847,671
Total capital assets being
depreciated, net
34,319,321
4,248,135
(87,353)
25,597
38,454,506
Capital assets, net $38,701,227 $6,080,272 $(87,353) $5,404,579 $39,289,567
Note 4 - Construction Commitments
The District had major contractual commitments related to various capital projects at June 30,
2014, for remodeling projects on the Painted Desert Campus located in Holbrook, the Silver
Creek Campus located in Snowflake/Taylor, the White Mountain Campus located in Show
Low, the Little Colorado Campus located in Winslow, and the Whiteriver Center located in
Whiteriver. At June 30, 2014, the District had spent $126,000 on these projects and had
remaining contractual commitments with contractors of $1,162,000. These projects are being
financed by unrestricted net position designated by the District Governing Board for these
purposes.
34
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 5 - Long-Term Liabilities
The following schedule details the District’s long-term liability and obligation activity for the
year ended June 30, 2014:
Balance
July 1, 2013 Additions Reductions
Balance
June 30, 2014
Due within
1 year
Compensated absences payable $375,828 $349,631 $320,378 $405,081 $303,811
Capital leases payable 74,336 16,591 57,745 17,854
Total long-term liabilities $450,164 $349,631 $336,969 $462,826 $321,665
Capital leases—The District has acquired printing and duplicating equipment under the
provisions of long-term lease agreements classified as capital leases for accounting
purposes because they provide for a bargain purchase option.
The assets acquired through capital leases are as follows:
Equipment $96,587
Less: accumulated depreciation 19,317
Net carrying value $77,270
The following schedule details debt service requirements to maturity for the District’s capital
leases payable at June 30, 2014:
Year ending June 30
2015 $22,251
2016 22,251
2017 22,251
Total minimum lease payments 66,753
Less amount representing interest 9,008
Present value of net minimum lease payments $57,745
Note 6 - Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
District participates with other Arizona community college districts and school districts in the
Arizona School Risk Retention Trust, Inc. (Trust), a public entity risk pool. The Trust insures
the District against liabilities arising from general liability, professional liability, property,
automobile, and commercial crime risks. The coverage limit for general liability is $50 million
with no deductible except for employer’s liability which is $500,000. The coverage limit for
professional liability is $10 million with no deductible. The coverage limit for property
insurance is $49 million with a $1,000 deductible. The coverage limit for automobile liability
is $10 million with no deductible. The coverage limit for commercial crime is $1.5 million with
a $100 deductible.
35
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
The Trust’s operating agreement includes a provision for the member to be charged an
additional assessment in the event that total claims paid by the Trust exceed the members’
contributions and reserves in any one year. The District will be charged for any such
assessment in the following year. The District has never been charged such an assessment.
The District also carries commercial insurance for other risks of loss, including workers’
compensation, employees’ health, accidental death and dismemberment for students and
employees, employee travel, and extended reporting for errors and omissions. Settled claims
resulting from these risks have not exceeded commercial insurance coverage in the past 3
fiscal years. There were no uninsured losses in the year ended June 30, 2014. The no-fault
mold coverage is limited to $25,000 per campus and covers direct physical loss or damage
caused by fungus, wet or dry rot, or bacteria, including the cost of removal and the cost for
clearance testing. The limitation is for mold damage not linked to a specific occurrence.
Property damage insurance continues to be available for occurrences reported within 30
days of the event.
The District participates with several local school districts in the Navajo County Schools
Employee Benefit Trust (Trust). The District uses the Trust to manage risks of loss related to
employee health and accident claims. The Trust is a public entity risk pool operating as a
common risk management and insurance program for its member school districts. The Trust
is funded by irrevocable contributions from the District for employee coverage and from
employees for dependent coverage. The Trust, which is managed by a separate board of
directors, allows the fund to be self-funded, insured, or both. Additionally, if the Trust
becomes insolvent, the District may be assessed, on a pro-rata basis, an additional
assessment not to exceed the amount of the annual contribution. Should the District withdraw
from the Trust, it would then be responsible for its proportional share of claims and would
forfeit all rights to the return of any surplus, unearned contributions, or other legally permitted
distributions from the Trust. Whether the District withdraws or the Trust becomes insolvent,
the District remains liable for assessments for liabilities of the Trust incurred during the
District’s period of membership in the Trust. The Trust has not assessed the District any
additional assessments above its annual contribution in any of the past 3 fiscal years.
Note 7 - Operating Leases
The District leases land, classroom and office space, information systems equipment, and
vehicles under the provisions of various long-term lease agreements classified as operating
leases for accounting purposes. Rental expenses under the terms of the operating leases
were $367,026 for the year ended June 30, 2014. The operating leases have remaining
noncancelable terms of 1 to 9 years and provide renewal options.
Of the current rental expenses, $32,955 was paid to the Foundation. The nature of the
relationship between the District and the Foundation is stated in Note 10. The District entered
into an operating lease with the Foundation for a building and parking lot. The term of the lease
began February 14, 2006, and continues to February 13, 2015. There is a step-down rental
provision of 20 percent that began March 1, 2011, and continues each March 1 thereafter.
36
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
The following future minimum payments were required under the operating leases at
June 30, 2014:
Year ending June 30
2015 $ 278,640
2016 227,991
2017 186,329
2018 178,050
2019 136,369
2020-2024 142,773
Total minimum lease payments $1,150,152
Note 8 - Pension and Other Postemployment Benefits
Plan descriptions—The District contributes to a cost-sharing, multiple-employer defined
benefit pension plan; a cost-sharing, multiple-employer defined benefit health insurance
premium benefit plan; and a cost-sharing, multiple-employer defined benefit long-term disability
plan, all of which the Arizona State Retirement System administers. The Arizona State
Retirement System (through its Retirement Fund) provides retirement (i.e., pension), death,
and survivor benefits; the Health Benefit Supplement Fund provides health insurance premium
benefits (i.e., a monthly subsidy); and the Long-Term Disability Fund provides long-term
disability benefits. State statute establishes benefits. The Arizona State Retirement System
Board governs the system according to the provisions of A.R.S. Title 38, Chapter 5, Article 2.
The System issues a comprehensive annual financial report that includes financial statements
and required supplementary information. The most recent report is available on its web site at
www.azasrs.gov; by writing the Arizona State Retirement System, 3300 N. Central Ave., P.O.
Box 33910, Phoenix, AZ 85067-3910; or by calling (602) 240-2000 or 1-800-621-3778.
Funding policy—The Arizona State Legislature establishes and may amend active plan
members’ and the District’s contribution rates. For the year ended June 30, 2014, statute
required active plan members to contribute at the actuarially determined rate of 11.54 percent
(11.3 percent for retirement and 0.24 percent for long-term disability) of the members’ annual
covered payroll and statute required the District to contribute at the actuarially determined
rate of 11.54 percent (10.7 percent for retirement, 0.6 percent for health insurance premium
benefit, and 0.24 percent for long-term disability) of the members’ annual covered payroll.
The District’s contributions for the current and 2 preceding years, all of which were equal to
the required contributions, were as follows:
Year ended June 30,
Retirement
Fund
Health Benefit
Supplement Fund
Long-Term
Disability Fund
2014 $1,223,689 $68,618 $27,438
2013 1,156,519 73,340 27,076
2012 968,778 61,837 23,940
37
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Note 9 - Operating Expenses
The District’s operating expenses are presented by functional classification in the Statement
of Revenues, Expenses, and Changes in Net Position – Primary Government. The operating
expenses can also be classified into the following:
Compensation and benefits $17,200,507
Contract services 2,243,436
Supplies and other services 3,550,497
Communications and utilities 1,086,284
Scholarships 2,240,669
Depreciation 1,838,484
Other 61,033
Total $28,220,910
The District uses credit cards to pay certain vendors for goods or services. The District did
not receive any reward, discount, incentive or other financial consideration resulting from
credit card payments for the year ended June 30, 2014.
Note 10 - Discretely Presented Component Unit Disclosures
A. Summary of Significant Accounting Policies
The significant accounting policies of the Foundation and NATC are described below to
enhance the usefulness of the financial statements to the reader.
Nature of the Component Units—The Foundation is a not-for-profit corporation operating
in accordance with Section 501(c)(3) of the Internal Revenue Code. The Foundation is
located in Snowflake, AZ, and provides supplemental philanthropic support for students, and
programs and services that advance the mission of Northland Pioneer College (College). The
Foundation receives cash contributions, gifts, membership dues, and rental income,
administers and invests securities and property, conducts special-event fundraisers, and
disburses payments to the College for educational purposes.
NATC is a not-for-profit corporation operating in accordance with Section 501(c)(3) of the
Internal Revenue Code. NATC owns and operates a regional training center located in
Taylor, AZ, which is utilized by Fire and Law Enforcement personnel throughout Northeast
Arizona. NATC derives its operating revenues primarily through membership dues paid by
the various user agencies and through user fees charged to other private organizations.
Basis of Accounting—The financial statements of the Foundation and NATC have been
prepared on the accrual basis of accounting. All revenues received for support of current
operations are immediately recorded as revenues while revenues received for support of
future operations are deferred and recognized over the periods to which the revenues relate.
38
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Financial Statement Presentation—The Foundation and NATC are required to report
information regarding its financial position and activities according to three classes of net
assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted
net assets.
Income Taxes—The Foundation and NATC are exempt from federal and state income taxes
under Section 501(c)(3) of the Internal Revenue Code and Section 43-1201 of the Arizona
Revised Statutes. Therefore, the accompanying financial statements contain no provision or
liability for income taxes. In addition, the Foundation qualifies for the charitable deduction
under Internal Revenue Section 170(b)(1)(A).
The Foundation and NATC file informational tax returns with the U.S. federal and Arizona
state governments.
Use of Estimates—The preparation of financial statements in conformity with generally
accepted accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents—The Foundation and NATC recognize highly liquid
investments with an original maturity of three months or less as cash equivalents and are
stated at fair value.
Investments—The Foundation recognizes investments in marketable securities with readily
determinable fair values and all investments in debt securities at their fair values in the
Statement of Financial Position. Unrealized gains and losses are included in the change in
net assets.
NATC has no investments as of June 30, 2014.
Property & Equipment—The Foundation capitalizes purchased property and equipment,
with estimated useful lives of more than one year, at cost. Donations of property and
equipment are recorded as contributions at their estimated fair value on the date of donation.
Such donations are reported as unrestricted contributions unless the donor has restricted the
donated asset to a specific purpose. Assets donated with explicit restrictions regarding their
use and contributions of cash that must be used to acquire property and equipment are
reported as restricted contributions. Property and equipment are depreciated using the
straight-line method over the estimated useful lives of the related assets, which range from
10 to 40 years.
NATC capitalizes purchased property and equipment with a cost of $5,000 or more and
having estimated useful lives of more than one year. Property and equipment are recorded
at cost or, for donated items, at their estimated fair value on the date of donation. Property
and equipment are depreciated using the straight-line method over the estimated useful lives
of the related assets, which range from 5 to 50 years.
39
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
Contributions—The Foundation and NATC record contributions received as unrestricted,
temporarily restricted, or permanently restricted support depending on the existence and/or
nature of any donor restrictions.
Endowment Funds—The Foundation is subject to an enacted version of the Uniform
Prudent Management of Institutional Funds Act (UPMIFA), which requires enhanced
disclosures for all its endowment funds. UPMIFA provides the Foundation with guidance on
accounting for the net asset classification of such endowment funds.
Property Held for Sale—The Foundation receives certain assets from donors that are held
for resale. Such assets are recorded at their approximate fair market values at the date of
donation. Property held for sale as of June 30, 2014 is reported as real estate investments.
Date of Management’s Review—Management has reviewed events subsequent to
June 30, 2014, up through the financial statements report date, for the Foundation,
September 16, 2014, and for NATC, August 8, 2014. Management has also reviewed events
subsequent to the component units financial statement report date up through the District’s
financial statements report date to evaluate their effect on the fair presentation of the financial
statements. The following subsequent events are being disclosed.
Subsequent to June 30, 2014 the Foundation has been reorganized with a new Board of
Directors and a new Executive Director. The name of the Foundation has been changed to
NPC Friends and Family, Inc. It will continue to act primarily as a fund-raising organization
that receives gifts and bequests, administers those resources, and disburses payments to or
on the behalf of the District for scholarships and other educational purposes.
Effective October 16, 2014, the Foundation sold the building and parking lot it owned in
Holbrook, Arizona, which was leased to the District for general office spaces. This resulted
in termination of the operating lease the District had with the Foundation.
B. Cash
The total cash held by the Foundation and NATC at June 30, 2014, are as follows:
Foundation NATC
Checking $10,661 $66,719
Money market 17,990
Savings 8,307
$36,958 $66,719
Unrestricted cash $33,788 $66,719
Restricted cash 3,170
$36,958 $66,719
40
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
C. Investments
For the year ended June 30, 2014, the Foundation had investments consisting of marketable
securities held with Edward Jones and real estate comprising several lots of land. The
marketable securities have a fair value of $127,497 and the real estate value was
approximately $8,000 as of June 30, 2014.
NATC had no investments as of June 30, 2014.
D. Property and Equipment
The total property and equipment held by the Foundation and NATC at June 30, 2014, are
as follows:
Foundation NATC
Land $ 10,000 $ 110,000
Buildings 50,000 293,971
Furniture & equipment 2,233
Training facilities 2,082,781
62,233 2,486,752
Less accumulated depreciation (29,252) (626,291)
$ 32,981 $1,860,461
E. Restrictions on Net Assets
The Foundation had temporarily restricted net assets in the amount of $64,542 as of June 30,
2014, consisting of donated contributions and investment earnings, which are available for
scholarships in future years. The Foundation had permanently restricted net assets of
$66,125 as of June 30, 2014, representing endowed scholarship funds.
NATC had no restricted net assets as of June 30, 2014.
F. Endowment Funds
The Foundation’s endowment consists of a fund established for the Martia A. Smith Memorial
Art Scholarship.
As required by generally accepted accounting principles, net assets associated with
endowment funds, including funds designated by the Board of Directors to function as
endowments, are classified and reported based on the existence or absence of donor-imposed
restrictions.
The Board of Directors of the Foundation has interpreted UPMIFA as requiring the
preservation of the fair value of the original gift as of the gift date of the donor-restricted
41
Navajo County Community College District
(Northland Pioneer College)
Notes to Financial Statements
June 30, 2014
endowment funds absent explicit donor stipulations to the contrary. As a result of this
interpretation, the Foundation classifies as permanently restricted net assets the original
value of gifts donated to the permanent endowment and the original value of subsequent
gifts to the permanent endowment.
The remaining portion of the donor-restricted endowment fund that is not classified in
permanently restricted net assets is classified as temporarily restricted net assets until those
amounts are appropriated for expenditure by the Foundation in a manner consistent with the
standard of prudence prescribed by UPMIFA.
NATC had no endowment funds as of June 30, 2014.
G. Related Parties
For a portion of the year ended June 30, 2014, the Foundation subcontracted its Executive
Director and made payments to Chugg Financial Services, LLC, a company that is owned
and operated by its former Executive Director.
The Foundation owns a building and parking lot in Holbrook, Arizona, which was leased to
NPC for general offices during the year ended June 30, 2014. Effective October 16, 2014,
the Foundation sold the building and parking lot. This resulted in termination of the operating
lease the District had with the Foundation.
NPC provides certain use of facilities and staff services which benefits NATC. However, since
these provided facilities and services also benefit NPC’s educational programs, no value for
these amounts are recorded on NATC’s financial statements.
NPC also leases the training facility and equipment on a year to year lease. The lease income
to NATC from NPC was $26,000 for the year ended June 30, 2014.
This note should be read in conjunction with Note 7 on operating leases.
42
Statistical Section
Statistical Section Introduction
In accordance with Governmental Accounting Standards Boards Statement No. 44,
Economic Condition Reporting: This is the statistical section of Navajo County Community
College District’s (the District) CAFR (comprehensive annual financial report). The
information in this section is presented in detail and is compiled data over ten years that
addresses key areas that relate to the overall nature of the institution.
Financial Trends
These schedules contain trend information to help the reader understand how the District’s
financial performance and well-being have changed over-time.
Revenue Capacity
These schedules contain information to help the reader assess the District’s most
significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
District’s current levels of outstanding debt and the District’s ability to issue additional
debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the District’s financial report relates to the services the District
provides and the activities it performs.
43
2013-14 2012-13 2011-12 2010-11 2009-10
Primary government
Net investment in capital assets $ 39,231,822 $ 38,626,891 $ 33,030,762 $ 31,503,651 $ 32,314,878
Restricted 6 12,712 6 91,628 7 35,512 7 17,570 7 16,192
Unrestricted 40,454,224 37,382,691 38,388,993 34,195,371 25,496,949
Total primary government net position $ 80,298,758 $ 76,701,210 $ 72,155,267 $ 66,416,592 $ 58,528,019
2008-09 2007-08 2006-07 2005-06 2004-05
Primary government
Net investment in capital assets $ 33,252,059 $ 30,693,926 $ 28,703,360 $ 27,003,288 $ 24,269,466
Restricted 7 50,289 5 60,887 4 17,583 7 2,871 1 31,260
Unrestricted 16,951,989 13,723,069 10,881,445 9,030,144 7,001,864
Total primary government net position $ 50,954,337 $ 44,977,882 $ 40,002,388 $ 36,106,303 $ 31,402,590
Source:
Audited financial statements.
Navajo County Community College District
(Northland Pioneer College)
Net Position by Component
Last Ten Fiscal Years
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Net Position by Component
Net investment in capital assets Restricted Unrestricted
44
2013-14 2012-13 2011-12
(1)
2010-11
(2)
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Operating revenues:
Tuition and fees,
net scholarship allowances $ 2,295,137 $ 2,466,640 $ 2,690,260 $ 2,319,373 $ 3,062,113 $ 2,824,047 $ 2,483,223 $ 2,361,668 $ 2,390,338 $ 1,996,874
Government contracts (3) 3,156,936 2,969,273 2,638,049 2,060,376 1,868,359 2,058,901 3 ,032,846 1,014,145 1,511,652 1,469,989
Bookstore income, net of
scholarship allowances 6 6,720 42,460 33,564 28,892 701,123 803,661 995,347 678,774 849,174 808,569
Other 352,295 379,831 291,648 369,299 297,825 247,370 172,720 211,818 231,919 222,363
Total operating revenues 5,871,088 5,858,204 5,653,521 4,777,940 5,929,420 5,933,979 6,684,136 4,266,405 4,983,083 4,497,795
Operating expenses:
Instruction 9,761,727 9,660,102 8,827,606 8,450,971 9,067,801 10,565,902 10,355,967 9,305,328 9,299,812 9,316,065
Public service 3 5,889 29,387 25,647 13,128 14,178 14,126 12,562 9 ,548 10,020 15,388
Academic support 1,046,927 1,047,037 1,009,880 996,556 985,173 785,099 803,190 817,101 874,888 815,634
Student services 2,143,989 2,151,538 2,015,021 1,532,942 3,750,620 3,364,710 3,018,052 2,585,022 2,395,805 2,571,292
Institutional Support 8,475,611 8,308,926 8,481,782 6,681,808 7,151,218 7,814,683 7,141,298 6,789,420 5,583,393 5,008,757
Operation and maintenance
of plant 2,118,547 1,867,890 1,758,007 1,563,034 1,599,258 2,037,490 2,182,091 1,725,738 1,831,712 1,673,191
Scholarships 2,240,669 2,570,647 3 ,094,923 3 ,128,320 609,337 980,151 630,161 602,880 555,108 511,772
Auxiliary enterprises 5 59,067 4 51,470 404,767 1,217,755 1,270,886 1,547,548 1,508,514 1,551,240 1,479,195 1,446,337
Depreciation 1,838,484 1,544,414 1 ,366,808 1 ,320,494 1,435,550 1 ,234,076 2 ,195,985 1 ,130,750 1 ,132,385 1 ,086,783
Total operating expenses 28,220,910 27,631,411 26,984,441 24,905,008 25,884,021 28,343,785 27,847,820 24,517,027 23,162,318 22,445,219
Operating loss ( 22,349,822) (21,773,207) (21,330,920) (20,127,068) (19,954,601) (22,409,806) (21,163,684) (20,250,622) (18,179,235) (17,947,424)
Nonoperating revenues
(expenses):
Property taxes 13,153,327 13,180,294 12,703,703 11,988,497 11,353,707 12,321,619 11,651,832 11,022,566 11,122,948 9,749,809
State appropriations 7,160,800 7,059,800 8,181,800 10,214,000 10,214,000 9,807,911 9,717,500 7,784,925 7,147,900 6,547,100
Government grants (3) 4,740,596 5,018,111 5,502,290 4,955,825 4,956,184 5,083,645 3,146,431 3,266,321 3,241,987 3,402,668
Private grants (4) 304,219 325,919 360,370 345,534 450,763 529,310 871,651 636,211 339,768 255,835
Share of state sales taxes 435,192 545,682 372,308 386,743 422,737 453,912 487,131 512,032 474,307 456,613
Investment earnings 148,526 170,717 136,283 124,907 130,891 257,027 502,903 540,886 205,191 155,540
Interest expense (5,138) - (6,854) (3,428) - (67,163) (131,411) (185,709) (226,053) (274,389)
Gain/(loss) on disposal of
capital assets (112,752) 1 8,627 (180,305) 3 ,563 - - (612,459) - - -
Other - - - - - - - - - (191,774)
Total nonoperating revenues
and expenses 25,824,770 26,319,150 27,069,595 28,015,641 27,528,282 28,386,261 25,633,578 23,577,232 22,306,048 20,101,402
Income before other revenues,
expenses, gains or loss 3,474,948 4,545,943 5,738,675 7,888,573 7,573,682 5,976,455 4,469,894 3,326,610 4,126,813 2,153,978
Capital appropriations 122,600 - - - - - 505,600 569,475 576,900 586,300
Increase in net position 3,597,548 4,545,943 5,738,675 7,888,573 7,573,682 5,976,455 4,975,494 3,896,085 4,703,713 2,740,278
Total net position, July 1 76,701,210 72,155,267 66,416,592 58,528,019 50,954,337 44,977,882 40,002,388 36,106,303 31,402,590 28,662,312
Total net position, June 30 $ 80,298,758 $ 76,701,210 $ 72,155,267 $ 66,416,592 $ 58,528,019 $ 50,954,337 $ 44,977,882 $ 40,002,388 $ 36,106,303 $ 31,402,590
Source:
Audited financial statements except as reclassified in (3) and (4).
Notes:
(4) In fiscal year 2011-12, Private grants were adjusted to reclassify the amounts from operating to nonoperating revenues. For comparability purposes, prior years have been
reclassified.
Navajo County Community College District
(Northland Pioneer College)
Changes in Net Position
Last Ten Fiscal Years
(1) Starting in fiscal year 2011-12, Tuition and fees, net of scholarship allowances and Government contracts were adjusted to reclassify tuition waivers associated with an
intergovernment agreement as a scholarship allowance.
(3) In fiscal year 2007-08, Government grants, which were included with Government contracts, were reclassified from operating revenues to nonoperating revenues. For
comparability purposes, prior years have been reclassified.
(2) Starting in fiscal year 2010-11, expenses for Scholarships and Students services were adjusted to reclassify payments made to students for student financial aid and scholarships.
These payments were reported as Student services in prior years.
45
2013-14 2012-13 2011-12 2010-11 (1) 2009-10
Instruction $ 9,761,727 $ 9,660,102 $ 8,827,606 $ 8,450,971 $ 9,067,801
Public service 3 5,889 29,387 25,647 13,128 14,178
Academic support 1,046,927 1,047,037 1,009,880 9 96,556 9 85,173
Student services 2,143,989 2,151,538 2,015,021 1,532,942 3,750,620
Institutional support 8,475,611 8,308,926 8,481,782 6,681,808 7,151,218
Operation and maintenance of plant 2,118,547 1,867,890 1,758,007 1,563,034 1,599,258
Scholarships 2,240,669 2,570,647 3,094,923 3,128,320 6 09,337
Auxiliary enterprises 5 59,067 4 51,470 4 04,767 1,217,755 1,270,886
Depreciation 1,838,484 1,544,414 1,366,808 1,320,494 1,435,550
Total operating expenses 28,220,910 27,631,411 26,984,441 24,905,008 25,884,021
Interest expense 5,138 - 6,854 3,428 -
Loss on disposal of capital assets 1 12,752 - 1 80,305 - -
Other - - - - -
Total nonoperating expenses 1 17,890 - 1 87,159 3,428 -
Total expenses $ 28,338,800 $ 27,631,411 $ 27,171,600 $ 24,908,436 $ 25,884,021
2008-09 2007-08 2006-07 2005-06 2004-05
Instruction $ 10,565,902 $ 10,355,967 $ 9,305,328 $ 9,299,812 $ 9,316,065
Public service 1 4,126 1 2,562 9 ,548 1 0,020 1 5,388
Academic support 7 85,099 8 03,190 8 17,101 8 74,888 8 15,634
Student services 3,364,710 3,018,052 2,585,022 2,395,805 2,571,292
Institutional support 7,814,683 7,141,298 6,789,420 5,583,393 5,008,757
Operation and maintenance of plant 2,037,490 2,182,091 1,725,738 1,831,712 1,673,191
Scholarships 9 80,151 6 30,161 6 02,880 5 55,108 5 11,772
Auxiliary enterprises 1,547,548 1,508,514 1,551,240 1,479,195 1,446,337
Depreciation 1,234,076 2,195,985 1,130,750 1,132,385 1,086,783
Total operating expenses 28,343,785 27,847,820 24,517,027 23,162,318 22,445,219
Interest expense 6 7,163 1 31,411 1 85,709 2 26,053 2 74,389
Loss on disposal of capital assets - 6 12,459 - - -
Other - - - - 1 91,774
Total nonoperating expenses 6 7,163 7 43,870 1 85,709 2 26,053 4 66,163
Total expenses $ 28,410,948 $ 28,591,690 $ 24,702,736 $ 23,388,371 $ 22,911,382
Source:
Audited financial statements.
Note:
Navajo County Community College District
(Northland Pioneer College)
Expenses by Function
Last Ten Fiscal Years
(1) Starting in fiscal year 2010-11, expenses for Scholarships and Student services were adjusted to reclassify payments made to students for student financial aid and
scholarships. These payments were reported as Student services in prior years.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Total Operating Expenses
Total operating expenses (1)
46
2013-14 2012-13 2011-12 2010-11 (2) 2009-10
Compensation and benefits (1) $ 17,200,507 $ 16,939,312 $ 15,550,537 $ 14,290,694 $ 15,122,656
Contract services 2,243,436 2,138,098 2,680,066 1,621,476 1,729,224
Supplies and other services 3,550,497 3,223,900 3,086,612 3,289,474 5,399,355
Communications and utilities 1,086,284 1,191,308 1,183,082 1,232,953 1,399,939
Scholarships 2,240,669 2,570,647 3,094,923 3,128,320 609,337
Depreciation 1,838,484 1,544,414 1,366,808 1,320,494 1,435,550
Other 61,033 23,732 22,413 21,597 187,960
Total operating expenses 28,220,910 27,631,411 26,984,441 24,905,008 25,884,021
Non operating expenses 117,890 - 187,159 3,428 -
Total expenses $ 28,338,800 $ 27,631,411 $ 27,171,600 $ 24,908,436 $ 25,884,021
2008-09 2007-08 2006-07 2005-06 2004-05
Compensation and benefits (1) $ 16,822,406 $ 19,258,989 $ 17,481,916 $ 15,806,791 $ 15,680,065
Contract services 2,268,681 2,197,358 2,634,480 2,010,141 1,989,023
Supplies and other services 4,960,590 1,562,855 994,203 1,072,670 1,063,039
Communications and utilities 1,520,225 1,530,845 1,494,933 1,191,012 1,149,169
Scholarships 980,151 630,161 602,880 555,108 511,772
Depreciation 1,234,076 2,195,985 1,130,750 1,132,385 1,086,783
Other 557,656 471,627 177,865 1,394,211 965,368
Total operating expenses 28,343,785 27,847,820 24,517,027 23,162,318 22,445,219
Non operating expenses 67,163 743,870 185,709 226,053 466,163
Total expenses $ 28,410,948 $ 28,591,690 $ 24,702,736 $ 23,388,371 $ 22,911,382
Source:
Audited financial statements except as adjusted in (3).
Notes:
(3) In fiscal year 2006-07, Other was adjusted for rounding to match Total operating expenses in the Statement of Revenues, Expenses, and
Changes in Net Assets.
(1) Starting in fiscal year 2013-14, Compensation and benefits replaced Personal services to more accurately describe the expense category.
(2) Starting in fiscal year 2010-11, expenses for Scholarships and Students services were adjusted to reclassify payments made to students for
student financial aid and scholarships. These payments were reported as Supplies and other services in prior year.
Navajo County Community College District
(Northland Pioneer College)
Expenses by Use
Last Ten Fiscal Years
61%
8%
12%
4%
8%
6%
1%
FY13-14 Expenses by Use
Compensation and benefits (1) Contract services
Supplies and other services Communications and utilities
Scholarships Depreciation
Other - operating & nonoperating
68%
9%
5%
5%
2% 5% 6%
FY04-05 Expenses by Use
Compensation and benefits (1) Contract services
Supplies and other services Communications and utilities
Scholarships Depreciation
Other - operating & nonoperating
47
Navajo County Community College District
(Northland Pioneer College)
Revenues by Source
Last Ten Fiscal Years
2013-14 2012-13 2011-12 (1) 2010-11 2009-10
Tuition and fees, net $ 2,295,137 $ 2,466,640 $ 2,690,260 $ 2,319,373 $ 3,062,113
Government contracts (2) 3,156,936 2,969,273 2,638,049 2,060,376 1,868,359
Bookstore income, net 6 6,720 42,460 33,564 28,892 7 01,123
Other 352,295 379,831 291,648 369,299 2 97,825
Total operating revenue 5,871,088 5,858,204 5,653,521 4,777,940 5,929,420
Property taxes 13,153,327 13,180,294 12,703,703 11,988,497 11,353,707
State appropriations 7,160,800 7,059,800 8,181,800 10,214,000 10,214,000
Government grants (2) 4,740,596 5,018,111 5,502,290 4,955,825 4,956,184
Private grants (3) 3 04,219 3 25,919 3 60,370 3 45,534 4 50,763
Share of state sales taxes 4 35,192 5 45,682 3 72,308 3 86,743 4 22,737
Investment earnings 1 48,526 1 70,717 1 36,283 1 24,907 1 30,891
Gain on disposal of capital assets - 18,627 - 3,563 -
Total nonoperating revenues 25,942,660 26,319,150 27,256,754 28,019,069 27,528,282
Capital appropriations 122,600 - - - -
Total revenues $ 31,936,348 $ 32,177,354 $ 32,910,275 $ 32,797,009 $ 33,457,702
2008-09 2007-08 2006-07 2005-06 2004-05
Tuition and fees, net $ 2,824,047 $ 2,483,223 $ 2,361,668 $ 2,390,338 $ 1,996,874
Government contracts (2) 2,058,901 3,032,846 1,014,145 1,511,652 1,469,989
Bookstore income, net 8 03,661 9 95,347 6 78,774 8 49,174 8 08,569
Other 247,370 172,720 211,818 231,919 2 22,363
Total operating revenue 5,933,979 6,684,136 4,266,405 4,983,083 4,497,795
Property taxes 12,321,619 11,651,832 11,022,566 11,122,948 9,749,809
State appropriations 9,807,911 9,717,500 7,784,925 7,147,900 6,547,100
Government grants (2) 5,083,645 3,146,431 3,266,321 3,241,987 3,402,668
Private grants (3) 5 29,310 8 71,651 6 36,211 3 39,768 2 55,835
Share of state sales taxes 4 53,912 4 87,131 5 12,032 4 74,307 4 56,613
Investment earnings 2 57,027 5 02,903 5 40,886 2 05,191 1 55,540
Gain on disposal of capital assets - - - - -
Total nonoperating revenues 28,453,424 26,377,448 23,762,941 22,532,101 20,567,565
Capital appropriations - 505,600 569,475 576,900 5 86,300
Total revenues $ 34,387,403 $ 33,567,184 $ 28,598,821 $ 28,092,084 $ 25,651,660
Source:
Audited financial statements except as reclassified in (2) and (3).
Notes:
(1) Starting in fiscal year 2011-12, Tuition and fees, net of scholarship allowances and Government contracts were adjusted to reclassify tuition
waivers associated with an intergovernment agreement as a scholarship allowance.
(2) In fiscal year 2007-08, Government grants, which were included with Government contracts, were reclassified from operating revenues to
nonoperating revenues. For comparability purposes, prior years have been reclassified.
(3) In fiscal year 2011-12, Private grants were adjusted to reclassify the amounts from operating to nonoperating revenues. For comparability
purposes, prior years have been reclassified.
Tuition and
fees, net
7% Government
contracts/
grants
25%
Property
taxes
41%
State/Capital
appropriations
23%
Share of
state sales
taxes
1%
Other
3%
FY13-14 Revenues by Source
Tuition and
fees, net
8%
Government
contracts/
grants
19%
Property
taxes
38%
State/Capital
appropriations
28%
Share of
state sales
taxes
2%
Other
5%
FY04-05 Revenues by Source
48
Fiscal Year Statutory Budgeted Amount
Expenditure Expeditures Under/(Over)
Limitation Subject to Expenditure
(1) Limitation (2) Limitation
2013-14 $ 14,894,360 $ 14,894,360 - (3)
2012-13 15,978,265 15,561,404 416,861
2011-12 16,251,916 15,751,979 499,937
2010-11 17,086,770 14,738,989 2,347,781
2009-10 16,823,427 15,515,610 1,307,817
2008-09 15,829,197 15,950,154 (120,957) (4)
2007-08 16,100,110 15,416,094 684,016
2006-07 16,284,904 16,202,909 81,995
2005-06 16,278,691 15,915,946 362,745
2004-05 $ 15,891,525 $ 14,429,617 $ 1,461,908
Source:
Audited annual budgeted expenditure limitation reports.
Notes:
(2) Budgeted expenditures are net of allowable exclusions.
Expenditure Limitation
Navajo County Community College District
(Northland Pioneer College)
(4) The District exceeded its expenditure limitation due to the expenditure of
revenues from amounts received from retail bookstore transactions in the
amount of $1,326,751. According to Laws 2006, Chapter 198, if a community
college exceeds its expenditure limitation due to the expenditures of revenues
from amounts received from retail transactions at bookstores operated by a
community college district, the community college shall not have any state aid
withheld pursuant to section 15-1466, Arizona Revised Statutes.
(1) The Statutory Expenditure Limitation is calculated by the Arizona Department
of Revenue Economic Estimates Commission and applies to Current (General,
Auxiliary Enterprises, and Restricted) and Plant Funds (Unexpended and
Retirement of Indebtedness).
(3) Budgeted expenditures for fiscal year 2014 is an estimate, audited numbers
not yet available.
Last Ten Fiscal Years
Statutory Limit to Budgeted Expenditures
49
Fiscal
Year
Centrally
Assessed
(1)
Locally
Assessed
Real Property
(1)
Locally
Assessed
Personal
Property
(1)
Total
Assessed Value
Total
Direct Tax
Rate (2)
Estimated
Actual Value
Assessed
Value as
Percentage of
Actual Value
2013-14 $2 72,274,079 $ 612,397,229 $ 1 8,680,546 $ 903,351,854 1.4769 $ 8,197,385,245 11.02% (3)
2012-13 2 70,501,880 683,203,369 2 0,587,141 974,292,390 1.3515 8,841,128,766 11.02%
2011-12 2 60,662,273 745,626,178 1 9,848,674 1,026,137,125 1.2387 9,354,030,310 10.97%
2010-11 2 34,930,409 802,594,776 2 1,479,665 1,059,004,850 1.1308 9,531,996,850 11.11%
2009-10 2 19,541,850 758,613,629 2 0,609,071 998,764,550 1.1352 8,933,493,292 11.18%
2008-09 2 09,385,295 679,130,430 1 9,841,971 908,357,696 1.3382 8,081,474,164 11.24%
2007-08 2 02,500,639 590,606,733 1 9,206,899 812,314,271 1.4206 7,182,265,880 11.31%
2006-07 2 01,542,336 516,317,059 1 6,977,326 734,836,721 1.4858 6,462,943,896 11.37%
2005-06 1 99,147,834 465,538,343 1 9,247,953 683,934,130 1.5200 6,004,689,464 11.39%
2004-05 $1 91,502,908 $ 431,698,011 $ 2 1,394,346 $ 644,595,265 1.5092 $ 5,684,261,596 11.34%
Source:
District records, Arizona Department of Revenue, Navajo County Finance and Assessor offices.
Notes:
(3) Assessed Value as Percentage of Actual Value for fiscal year 2013-14 is based on prior year, current year information
not available.
(1) Categories presented are based on information provided by the Property Tax Oversight Commission for the Arizona
Department of Revenue. Categories based on Residential, Commercial and Personal Property is not available but is
expected in future years. Centrally assessed property is assessed by the State of Arizona versus the County and includes
railroads, pipelines, utilities and other real property. Assessed values include certain tax exempt properties.
Primary Assessed Valuation
(2) Total Direct Tax Rate includes both primary and secondary tax rates for fiscal years 2008-09 to 2004-05.
Navajo County Community College District
(Northland Pioneer College)
Assessed Valuation, Tax Rate, and Estimated Actual Value
Last Ten Fiscal Years
50
Fiscal Year Total Current Percent of Collections in Total Tax Percent of
Adjusted Tax Current Tax Subsequent Collections Total Tax
Tax Levy Collections Collections Years (2) Collections
(1) (2) to Total (2) to Total
Tax Levy Tax Levy
2013-14 (3) $ 1 3,267,899 $ 12,815,737 96.59% $ - $ 12,815,737 96.59%
2012-13 1 3,059,169 12,671,313 97.03% 355,466 1 3,026,779 99.75%
2011-12 1 2,647,564 12,187,235 96.36% 437,998 1 2,625,233 99.82%
2010-11 1 1,898,901 11,303,655 95.00% 577,314 1 1,880,970 99.85%
2009-10 1 1,331,739 10,769,251 95.04% 550,937 1 1,320,188 99.90%
2008-09 1 2,312,004 11,733,475 95.30% 571,881 1 2,305,356 99.95%
2007-08 1 1,624,490 11,083,456 95.35% 537,940 1 1,621,396 99.97%
2006-07 1 0,967,580 10,529,086 96.00% 436,222 1 0,965,308 99.98%
2005-06 1 0,405,570 9,744,447 93.65% 658,637 1 0,403,084 99.98%
2004-05 $ 9 ,732,077 $ 9,234,450 94.89% $ 496,029 $ 9 ,730,479 99.98%
Source:
Navajo County Treasurer and Assessor Offices and District records.
Notes:
(2) Tax collections are recorded on a cash basis.
Navajo County Community College District
(Northland Pioneer College)
Property Tax Levies and Collections
Last Ten Fiscal Years
(3) In fiscal year 2014 an adjustment was made for a court settlement with Transwestern Pipeline in the
amount of $120,000. This adjustment reduced the tax levies for fiscal years 2013, 2012 and 2011.
(1) The Total Adjusted Tax Levy amounts include cumlative adjustments from the year of levy until the
present year for tax exempt property and/or court settlements.
51
Fiscal
Year
Navajo
County
Primary Secondary Total From To From To From To
2013-14 1.4769 1.4769 0.6995 0.2789 1.1934 0.0500 3.5500 0.4312 8.0000
2012-13 1.3515 1.3515 0.6401 0.2789 0.9880 0.0500 3.5500 0.1255 8.0000
2011-12 1.2387 1.2387 0.5984 0.2789 0.9815 0.0500 3.5500 1.7682 7.2564
2010-11 1.1308 1.1308 0.5572 0.2789 0.8567 0.0500 3.5500 1.4797 8.0000
2009-10 1.1352 1.1352 0.5594 0.2789 0.8550 0.0500 3.5500 1.3726 8.3747
2008-09 1.1719 0.1663 1.3382 0.5775 0.2845 0.8685 0.0500 3.5500 1.4622 7.7773
2007-08 1.2257 0.1949 1.4206 0.6041 0.2845 0.8870 0.0500 3.5500 1.6020 6.7592
2006-07 1.2639 0.2219 1.4858 0.6229 0.5216 0.9134 0.0500 2.6347 1.7394 8.0200
2005-06 1.2857 0.2343 1.5200 0.6337 0.5324 0.9501 0.0500 2.6514 1.8090 8.0200
2004-05 1.2566 0.2526 1.5092 0.6316 0.5610 0.9501 0.0500 2.4450 1.8931 8.0200
Source:
District records and Navajo County Treasurer.
Navajo County Community College District
(Northland Pioneer College)
Property Tax Rates, Direct and Overlapping Governments
Last Ten Years (Per $100 of Assessed Value)
Cities and Towns Fire and Special
Districts
School Districts
Overlapping Rates
Northland Pioneer College
52
Primary Rank Percent of Primary Rank Percent of
Assessed Navajo Assessed Navajo
Valuation County's Valuation County's
Primary Primary
Assessed Assessed
Valuation Valuation
Arizona Public Service Company $ 136,252,482 1 13.98% $ 9 6,593,064 1 15.49%
PacifiCorp Electric Operations 50,214,255 2 5.15% 3 2,473,751 2 5.21%
Transwestern Pipeline Co 17,302,668 3 1.78% 7 ,818,785 6 1.25%
Peabody Western Coal Co 13,825,500 4 1.42% 1 5,712,500 3 2.52%
El Paso Natural Gas Co 8,087,415 5 0.83% 9 ,728,495 5 1.56%
Burlington Northern/Santa Fe Railway 6,782,129 6 0.70% 5 ,184,182 10 0.83%
Citizens Telecom of White Mountains 5,833,729 7 0.60% 1 0,589,603 4 1.70%
Navopache Electric Co-Op Inc 5,666,680 8 0.58% 5 ,430,813 9 0.87%
Smith Bagley 5,279,667 9 0.54% n/a n/a n/a
Unisource Energy Corporation 4,968,246 10 0.51% n/a n/a n/a
Navajo County Assessed Value $ 974,292,390 $ 623,721,601
Source:
Navajo County Finance and Assessor Offices.
Note:
Information presented is based on tax year.
2013 2004
Navajo County Community College District
(Northland Pioneer College)
Principal Taxpayers
Current Year and Nine Years Ago
53
Fiscal Year General Tuition Annual Cost
(1) per Credit Hour per Full-Time Increase (Decrease)
(2) Student Dollars Percent
(3)
2013-14 $ 64 $ 1,920 $ 2 3%
2012-13 62 1,860 2 3%
2011-12 60 1,800 4 7%
2010-11 56 1,680 4 8%
2009-10 52 1,560 4 8%
2008-09 48 1,440 4 9%
2007-08 44 1,320 4 10%
2006-07 40 1,200 (2) -5%
2005-06 42 1,260 4 11%
2004-05 $ 38 $ 1,140 $ 3 9%
Source:
District records.
Notes:
(1) Tuition rate changes are effective beginning the fall term each year.
(3) Full-time students are defined as taking 30 credit hours in an academic year.
(2) For fiscal years 2009-10 and prior, the District utilized a tiered tuition scale featuring plateaus for credit
hours between 3.5 - 7.5 and greater than 12.
District Historic Tuition
Navajo County Community College District
(Northland Pioneer College)
Historic General Resident Tuition
Last Ten Fiscal Years
2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
$64 $62 $60 $56 $52 $48 $44 $40 $42 $38
$1,920 $1,860 $1,800
$1,680
$1,560
$1,440
$1,320
$1,200 $1,260
$1,140
Historic General Resident Tuition
General Tuition per Credit Hour
(2)
Annual Cost per Full-time Student
(3)
54
Fiscal Year General Certificates of Capital Total Per FTSE Per Capita
Obligation Participation Lease Outstanding (1) (2)
Bonds Obligations Debt
2013-14 $ - $ - $ 57,745 $ 57,745 $ 31.64 $ 0.54
2012-13 - - 74,336 74,336 37.89 0.69
2011-12 - - - - - -
2010-11 - - 83,123 83,123 37.46 0.78
2009-10 - - - - - -
2008-09 - - - - - -
2007-08 1,605,000 235,000 - 1,840,000 735.71 16.38
2006-07 3,165,000 455,000 39,446 3,659,446 1,588.30 32.97
2005-06 4,680,000 665,000 116,740 5,461,740 2,268.16 50.11
2004-05 $ 6,155,000 $ 860,000 $ 191,951 $ 7,206,951 $ 2,660.37 $ 67.37
Source:
Audited financial statements, Audited FTSE report, U.S. Bureau of Economic Analysis.
Notes:
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
Navajo County Community College District
(Northland Pioneer College)
(1) Full Time Student Equivalent (FTSE) is based on a fiscal year.
(2) Population data is based on a calendar year. Data for 2014 is not yet available; calculation is based on prior
year data.
55
2013-14 2012-13 2011-12 2010-11 2009-10
Secondary Assessed Value of Real
and Personal Property $ 904,776,443 $ 978,263,926 $ 1,040,412,117 $ 1,116,355,302 $ 1,100,568,483
Debt Limit, 15% of Secondary
Assessed Value 135,716,466 1 46,739,589 156,061,818 167,453,295 165,085,272
Amount of Debt Applicable to Debt Limit:
General Obligation Bonded Debt - - - - -
Total net debt applicable to the limit - - - - -
Legal debt margin $ 135,716,466 $ 146,739,589 $ 156,061,818 $ 167,453,295 $ 165,085,272
Total net debt as a percentage of
debt limit 0.00% 0.00% 0.00% 0.00% 0.00%
2008-09 2007-08 2006-07 2005-06 2004-05
Secondary Assessed Value of Real
and Personal Property $ 998,760,072 $ 851,317,372 $ 754,945,315 $ 702,260,107 $ 662,473,080
Debt Limit, 15% of Secondary
Assessed Value 149,814,011 1 27,697,606 113,241,797 105,339,016 99,370,962
Amount of Debt Applicable to Debt Limit:
General Obligation Bonded Debt - 1,605,000 3,165,000 4 ,680,000 6,155,000
Total net debt applicable to the limit - 1,605,000 3 ,165,000 4 ,680,000 6 ,155,000
Legal debt margin $ 149,814,011 $ 126,092,606 $ 110,076,797 $ 100,659,016 $ 93,215,962
Total net debt as a percentage of
debt limit 0.00% 1.26% 2.79% 4.44% 6.19%
Source:
Navajo County Assessor's Office and District records.
Notes:
Navajo County Community College District
(Northland Pioneer College)
Computation of Legal Debt Margin
Last Ten Fiscal Years
The Arizona Constitution, Article 9, Section 8, states that a county or school district may become indebted for an amount not to
exceed 15% of taxable property.
56
Principal Interest
2013-14 $ - $ - $ - $ - N/A
2012-13 - - - - N/A
2011-12 - - - - N/A
2010-11 - - - - N/A
2009-10 - - - - N/A
2008-09 1,656,313 1 ,605,000 56,175 1,661,175 1.00
2007-08 1,664,423 1 ,560,000 99,075 1,659,075 1.00
2006-07 1,675,224 1 ,515,000 140,737 1,655,737 1.01
2005-06 1,643,808 1 ,475,000 170,238 1,645,238 1.00
2004-05 $ 1,598,302 $ 1 ,445,000 $ 199,138 $ 1,644,138 .97
Principal Interest
2013-14 $ - $ - $ - $ - N/A
2012-13 - - - - N/A
2011-12 - - - - N/A
2010-11 - - - - N/A
2009-10 - - - - N/A
2008-09 2,824,047 2 35,000 7,696 242,696 11.64
2007-08 2,483,223 2 20,000 29,583 249,583 9.95
2006-07 2,361,668 2 10,000 43,022 253,022 9.33
2005-06 2,390,338 1 95,000 55,308 250,308 9.55
2004-05 $ 1,996,874 $ 1 80,000 $ 66,468 $ 246,468 8.10
Source:
District records.
Notes:
(1) Secondary Property Tax Revenues are based on a cash basis.
(2) Revenues include tuition, net of scholarship allowances.
Fiscal Year Revenues Certificates of Participation
(2)
Total Debt
Service
Coverage
Ratio
Navajo County Community College District
(Northland Pioneer College)
Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year Secondary
Property Tax (1)
Total Debt
Service
Coverage
Ratio
General Obligation
57
Calendar County County County County
Year Population Personal Personal Unemployment
Income Income Rate
(In Thousands) Per Capita
2013 1 07,322 Not available Not available 15.2%
2012 1 07,094 $ 2,826,523 2 6,393 15.2%
2011 1 07,174 2,780,847 2 5,947 15.8%
2010 1 07,449 2,742,716 2 5,526 16.0%
2009 1 12,975 2,634,137 2 3,316 14.9%
2008 1 12,348 2,539,509 2 2,604 9.7%
2007 1 10,999 2,412,656 2 1,736 6.3%
2006 1 09,000 2,260,966 2 0,743 7.2%
2005 1 06,968 2,120,553 1 9,824 8.0%
2004 1 05,020 $ 1,933,211 $ 1 8,408 8.4%
Sources:
2013 County unemployment rate from Arizona Department of Administration Office of
Employment and Population Statistics (azstats.gov).
Navajo County Community College District
(Northland Pioneer College)
Schedule of Demographic and Economic Statistics
Last Ten Years
Navajo County Finance Department, 2013 Comprehensive Annual Financial Report.
2013 County population estimate from U.S. Census Bureau.
58
Employment by Sector 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Mining and Construction 1,600 1,600 1,325 1,450 1,600 2,375 2,925 3,200 2,825 2,500
Educational & Health Svcs 3,575 3,550 3,200 3,550 3,500 3,300 3,325 3,250 3,100 2,950
Financial Activities 600 575 425 400 475 525 600 650 575 600
Government 9,675 9,850 9,500 9,650 10,100 10,400 9,925 9,875 9,850 10,125
Leisure & Hospitality 3,875 3,600 3,625 3,500 3,150 3,475 3,475 3,200 3,175 3,200
Manufacturing 125 475 525 525 550 800 900 975 900 900
Information 1,175 1,175 1,150 1,150 1,075 1,000 825 800 750 650
Professional & Business Svcs 1,175 1,000 1,025 1,000 1,025 1,275 1,350 1,250 1,100 1,100
Trade, Transportation & Utilities 5,175 5,150 5,025 5,250 5,375 5,650 6,050 5,700 5,600 5,550
Other Services 1,050 950 525 700 750 850 800 925 950 800
Sources:
Note:
Figures are organized under the North American Industrial Classification System (NAICS).
APS, Joseph City Electric Services
Arizona Department of Corrections Prison
Algae Biosciences Pharmaceuticals
Bashas', Taylor Retail
Burlington Northern Santa Fe Line-Haul
Cellular One Communications
Hatch Auto Centers Auto Dealer
Hondah Resort & Casino Hospitality
H